Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Feb. 24, 2023 | |
Cover [Abstract] | ||
Document Type | 10-K | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | FY | |
Entity Registrant Name | JONES FINANCIAL COMPANIES LLLP | |
Entity Central Index Key | 0000815917 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity File Number | 0-16633 | |
Entity Tax Identification Number | 43-1450818 | |
Entity Address, Address Line One | 12555 Manchester Road | |
Entity Address, City or Town | Des Peres | |
Entity Address, State or Province | MO | |
Entity Address, Postal Zip Code | 63131 | |
City Area Code | 314 | |
Local Phone Number | 515-2000 | |
Entity Incorporation, State or Country Code | MO | |
Entity Limited Partnership Interests Outstanding | 1,776,754 | |
Entity Interactive Data Current | Yes | |
Entity Public Float | $ 0 | |
ICFR Auditor Attestation Flag | true | |
Document Annual Report | true | |
Document Transition Report | false | |
Documents Incorporated by Reference | None | |
Auditor Firm ID | 238 | |
Auditor Name | PricewaterhouseCoopers, LLP | |
Auditor Location | St. Louis, Missouri |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS: | ||
Cash and cash equivalents | $ 1,882 | $ 1,835 |
Cash and investments segregated under federal regulations | 17,827 | 20,179 |
Securities purchased under agreements to resell | 437 | 1,529 |
Receivable from: | ||
Clients | 4,375 | 4,187 |
Mutual funds, insurance companies and other | 850 | 850 |
Brokers, dealers and clearing organizations | 400 | 213 |
Securities owned, at fair value: | ||
Investment securities | 1,329 | 852 |
Inventory securities | 76 | 38 |
Lease right-of-use assets | 922 | 922 |
Fixed assets, at cost, net of accumulated depreciation and amortization | 862 | 725 |
Other assets | 932 | 878 |
TOTAL ASSETS | 29,892 | 32,208 |
Payable to: | ||
Clients | 21,359 | 23,763 |
Brokers, dealers and clearing organizations | 392 | 112 |
Accrued compensation and employee benefits | 2,165 | 2,401 |
Accounts payable, accrued expenses and other | 1,199 | 1,223 |
Lease liabilities | 958 | 954 |
Total liabilities before partnership capital | 26,073 | 28,453 |
Commitments and contingencies (Notes 13 and 14) | ||
Minimum Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals and partnership loans | 3,355 | 3,235 |
Reserve for anticipated withdrawals | 464 | 520 |
Total partnership capital subject to mandatory redemption | 3,819 | 3,755 |
TOTAL LIABILITIES | 29,892 | 32,208 |
Limited Partnership Capital [Member] | ||
Payable to: | ||
Minimum Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals and partnership loans | 1,212 | 1,225 |
Subordinated Limited Partnership Capital [Member] | ||
Payable to: | ||
Minimum Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals and partnership loans | 618 | 581 |
General Partnership Capital [Member] | ||
Payable to: | ||
Minimum Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals and partnership loans | $ 1,525 | $ 1,429 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue: | |||
Revenue | $ 11,984 | $ 12,143 | $ 9,894 |
Interest and dividends | 514 | 167 | 207 |
Other revenue, net | (87) | 63 | 64 |
Total revenue | 12,411 | 12,373 | 10,165 |
Interest expense | 142 | 94 | 102 |
Net revenue | 12,269 | 12,279 | 10,063 |
Operating expenses: | |||
Compensation and benefits | 8,568 | 8,720 | 7,186 |
Communications and data processing | 687 | 485 | 413 |
Occupancy and equipment | 582 | 547 | 522 |
Fund sub-adviser fees | 250 | 245 | 187 |
Professional and consulting fees | 182 | 151 | 109 |
Other operating expenses | 596 | 526 | 361 |
Total operating expenses | 10,865 | 10,674 | 8,778 |
Income before allocations to partners | 1,404 | 1,605 | 1,285 |
Allocations to partners: | |||
Limited partners | 165 | 208 | 189 |
Subordinated limited partners | 165 | 189 | 149 |
General partners | 1,074 | 1,208 | 947 |
Net income | $ 0 | $ 0 | $ 0 |
Income allocated to limited partners per weighted average $1,000 equivalent limited partnership unit outstanding | $ 135.65 | $ 169.10 | $ 147.81 |
Weighted average $1,000 equivalent limited partnership units outstanding | 1,219,815 | 1,230,986 | 1,242,781 |
Total Fee Revenue [Member] | |||
Revenue: | |||
Revenue | $ 10,500 | $ 10,424 | $ 8,175 |
Asset-based Fee Revenue [Member] | |||
Revenue: | |||
Revenue | 9,808 | 9,737 | 7,515 |
Account and Activity Fee Revenue [Member] | |||
Revenue: | |||
Revenue | 692 | 687 | 660 |
Trade Revenue [Member] | |||
Revenue: | |||
Revenue | $ 1,484 | $ 1,719 | $ 1,719 |
Consolidated Statements of In_2
Consolidated Statements of Income (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Limited partnership interest value | $ 1,000 | $ 1,000 | $ 1,000 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Partnership Capital Subject to Mandatory Redemption - USD ($) $ in Millions | Total | Limited Partnership Capital [Member] | Subordinated Limited Partnership Capital [Member] | General Partnership Capital [Member] |
Reserve for anticipated withdrawals | $ (407) | $ (110) | $ (43) | $ (254) |
TOTAL PARTNERSHIP CAPITAL SUBJECT TO MANDATORY REDEMPTION at Dec. 31, 2019 | 3,364 | 1,359 | 566 | 1,439 |
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals at Dec. 31, 2019 | 2,957 | 1,249 | 523 | 1,185 |
Partnership loans outstanding at beginning of year at Dec. 31, 2019 | 360 | 0 | 4 | 356 |
Total partnership capital, including capital financed with partnership loans, net of reserve for anticipated withdrawals at Dec. 31, 2019 | 3,317 | 1,249 | 527 | 1,541 |
Issuance of partnership interests | 213 | 1 | 49 | 163 |
Redemption of partnership interests | (244) | (13) | (37) | (194) |
Income allocated to partners | 1,285 | 189 | 149 | 947 |
Distributions | (641) | (64) | (93) | (484) |
Total partnership capital, including capital financed with partnership loans at Dec. 31, 2020 | 3,930 | 1,362 | 595 | 1,973 |
Partnership loans outstanding at end of year at Dec. 31, 2020 | (341) | 0 | (1) | (340) |
TOTAL PARTNERSHIP CAPITAL SUBJECT TO MANDATORY REDEMPTION at Dec. 31, 2020 | 3,589 | 1,362 | 594 | 1,633 |
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals at Dec. 31, 2020 | 3,075 | 1,237 | 538 | 1,300 |
Total partnership capital, including capital financed with partnership loans, net of reserve for anticipated withdrawals at Dec. 31, 2020 | 3,416 | 1,237 | 539 | 1,640 |
Reserve for anticipated withdrawals | (514) | (125) | (56) | (333) |
Issuance of partnership interests | 288 | 5 | 61 | 222 |
Redemption of partnership interests | (313) | (17) | (19) | (277) |
Income allocated to partners | 1,605 | 208 | 189 | 1,208 |
Distributions | (920) | (72) | (130) | (718) |
Total partnership capital, including capital financed with partnership loans at Dec. 31, 2021 | 4,076 | 1,361 | 640 | 2,075 |
Partnership loans outstanding at end of year at Dec. 31, 2021 | (321) | 0 | 0 | (321) |
TOTAL PARTNERSHIP CAPITAL SUBJECT TO MANDATORY REDEMPTION at Dec. 31, 2021 | 3,755 | 1,361 | 640 | 1,754 |
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals at Dec. 31, 2021 | 3,235 | 1,225 | 581 | 1,429 |
Total partnership capital, including capital financed with partnership loans, net of reserve for anticipated withdrawals at Dec. 31, 2021 | 3,556 | 1,225 | 581 | 1,750 |
Reserve for anticipated withdrawals | (520) | (136) | (59) | (325) |
Issuance of partnership interests | 339 | 4 | 58 | 277 |
Redemption of partnership interests | (352) | (17) | (21) | (314) |
Income allocated to partners | 1,404 | 165 | 165 | 1,074 |
Distributions | (793) | (65) | (112) | (616) |
Total partnership capital, including capital financed with partnership loans at Dec. 31, 2022 | 4,154 | 1,312 | 671 | 2,171 |
Partnership loans outstanding at end of year at Dec. 31, 2022 | (335) | 0 | 0 | (335) |
TOTAL PARTNERSHIP CAPITAL SUBJECT TO MANDATORY REDEMPTION at Dec. 31, 2022 | 3,819 | 1,312 | 671 | 1,836 |
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals at Dec. 31, 2022 | 3,355 | 1,212 | 618 | 1,525 |
Reserve for anticipated withdrawals | $ (464) | $ (100) | $ (53) | $ (311) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 0 | $ 0 | $ 0 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Income before allocations to partners | 1,404 | 1,605 | 1,285 |
Depreciation and amortization | 499 | 461 | 443 |
Changes in assets and liabilities: | |||
Investments segregated under federal regulations | 2,981 | (2,140) | (8,774) |
Securities purchased under agreements to resell | 1,092 | 185 | (21) |
Net payable to clients | (2,592) | 1,839 | 8,174 |
Net receivable from brokers, dealers and clearing organizations | 93 | 26 | 11 |
Receivable from mutual funds, insurance companies and other | 0 | (32) | (157) |
Securities owned | (515) | 444 | (952) |
Other assets | (54) | (195) | (67) |
Lease liabilities | (326) | (322) | (306) |
Accrued compensation and employee benefits | (236) | 297 | 357 |
Accounts payable, accrued expenses and other | 7 | 227 | 32 |
Net cash provided by operating activities | 2,353 | 2,395 | 25 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of fixed assets | (302) | (234) | (129) |
Cash used in investing activities | (302) | (234) | (129) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Repayment of general partnership loans | 71 | 45 | 0 |
Issuance of partnership interests | 63 | 66 | 50 |
Redemption of partnership interests | (336) | (260) | (214) |
Distributions from partnership capital | (1,173) | (1,181) | (864) |
Net cash used in financing activities | (1,375) | (1,330) | (1,028) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 676 | 831 | (1,132) |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH: | |||
Beginning of year | 7,706 | 6,875 | 8,007 |
End of year | $ 8,382 | $ 7,706 | $ 6,875 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Partnership’s Business and Basis of Accounting. The accompanying Consolidated Financial Statements include the accounts of The Jones Financial Companies, L.L.L.P. and all wholly-owned subsidiaries (collectively, the “Partnership” or "JFC"). The financial position of the Partnership’s subsidiaries in Canada as of November 30, 2022 and 2021 are included in the Partnership's Consolidated Statements of Financial Condition and the results for the twelve month periods ended November 30, 2022, 2021 and 2020 are included in the Partnership’s Consolidated Statements of Income, Consolidated Statements of Changes in Partnership Capital Subject to Mandatory Redemption and Consolidated Statements of Cash Flows because of the timing of the Partnership’s financial reporting process. The Partnership’s principal operating subsidiary, Edward D. Jones & Co., L.P. (“Edward Jones”), is a registered broker-dealer and investment adviser in the United States (“U.S.”), and one of Edward Jones’ subsidiaries, Edward Jones (an Ontario limited partnership) ("EJ Canada"), is a registered broker-dealer in Canada. Through these entities, the Partnership primarily serves individual investors in the U.S. and Canada. Edward Jones is a retail brokerage business and primarily derives revenues from fees for providing investment advisory and other account services to its clients, fees for assets held by clients and commissions for the distribution of mutual fund shares and insurance products and the purchase or sale of securities. The Partnership conducts business throughout the U.S. and Canada with its clients, various brokers, dealers, clearing organizations, depositories and banks. For financial information related to the Partnership’s two operating segments for the years ended December 31, 2022, 2021, and 2020, see Note 15 to the Consolidated Financial Statements. Trust services are offered to Edward Jones’ U.S. clients through Edward Jones Trust Company (“Trust Co.”), a wholly-owned subsidiary of the Partnership. Olive Street Investment Advisers, LLC ("Olive Street"), a wholly-owned subsidiary of the Partnership, provides investment advisory services to the eleven sub-advised mutual funds comprising the Bridge Builder® Trust ("BB Trust"). Passport Research, Ltd. ("Passport Research"), a wholly-owned subsidiary of the Partnership, provided investment advisory services to the sub-advised Edward Jones Money Market Fund (the "Money Market Fund") through November 1, 2022. Effective November 2, 2022, the Money Market Fund's Board of Trustees approved the transfer of its investment advisory services from Passport Research to Olive Street, which did not have a material effect on the Partnership's Consolidated Financial Statements. The Partnership is currently in the process of dissolving Passport Research. The Consolidated Financial Statements have been prepared on the accrual basis of accounting in conformity with U.S. generally accepted accounting principles (“GAAP”), which require the use of certain estimates by management in determining the Partnership’s assets, liabilities, revenues and expenses. Actual results could differ from these estimates. Certain prior period balances have been adjusted to align to current year presentation. The Partnership evaluated subsequent events for recognition or disclosure through March 10, 2023, whic h was the date these Consolidated Financial Statements were available to be issued, and identified no matters requiring disclosure. Partnership Agreement. Under the terms of the Partnership’s Twenty-First Amended and Restated Agreement of Registered Limited Liability Limited Partnership, dated September 1, 2021, (the “Partnership Agreement”), a partner’s capital is required to be redeemed by the Partnership in the event of the partner’s death or withdrawal from the Partnership, subject to compliance with ongoing regulatory capital requirements. In the event of a partner’s death, the Partnership generally redeems the partner’s capital within six months . The Partnership has restrictions in place which govern the withdrawal of capital. Under the terms of the Partnership Agreement, limited partners requesting withdrawal from the Partnership are repaid their capital in three equal annual installments beginning no earlier than 90 days after their withdrawal notice is received by the Managing Partner (as defined in the Partnership Agreement). The capital of general partners requesting withdrawal from the Partnership is converted to subordinated limited partnership capital or, at the discretion of the Managing Partner, redeemed by the Partnership. Subordinated limited partners requesting withdrawal are repaid their capital in six equal annual installments beginning no earlier than 90 days after their request for withdrawal of capital is received by the Managing Partner. The Managing Partner has discretion to waive or modify these withdrawal restrictions and to accelerate the return of capital. All current and future Partnership capital is subordinate to all current and future liabilities of the Partnership. The Partnership Agreement includes additional terms. Revenue Recognition. The Partnership's revenue is recognized based on contracts with clients, mutual fund companies, insurance companies and other product providers. As a full-service brokerage firm, Edward Jones provides clients with custodial services, including safekeeping of client funds, collecting and disbursing funds from a client's account, and providing trade confirmations and account statements. The Partnership does not charge a separate fee for these services. Revenue is generally recognized in the same manner for both the U.S. and Canada segments. The Partnership classifies its revenue into the following categories: Asset-based fee revenue – Revenue is derived from fees determined by the underlying value of client assets and includes advisory programs fees, service fees, and other asset-based fee revenue. The primary source of asset-based fee revenue is generated from program fees for investment advisory services provided within the Partnership’s advisory programs, including in the U.S., the Edward Jones Advisory Solutions® program (“Advisory Solutions”) and the Edward Jones Guided Solutions® program ("Guided Solutions") and, in Canada, the Edward Jones Portfolio Program® and the Edward Jones Guided Portfolios® program. Advisory program contracts outline the investment advisory services to be performed for a client under the contract and do not have a definite end date. Program fees are based on the average daily market value of client assets in the program as well as contractual rates and are charged to clients monthly and collected the following month. The investment advisory services performed in an advisory program contract are a series of distinct services that are substantially the same and have the same pattern of transfer to the client. As a result, the contract has one performance obligation and program fee revenue is recognized over time as clients simultaneously receive and consume the benefit from the investment advisory services performed by the Partnership. The Partnership's contracts with mutual fund and insurance companies, along with the prospectuses for mutual funds, allow the Partnership to sell those companies' products to clients (see Trade revenue below for the associated commissions earned from clients) and earn service fees for providing certain distribution and marketing support services for those companies' products held by Edward Jones clients. For mutual funds, those service fees are based on the terms of the mutual fund prospectuses. Service fees are generally based on the average daily market value of client assets held in a company's mutual fund or insurance product. For future service fees the Partnership may earn on existing client assets, market constraints prevent reasonably estimating the transaction price and estimates could result in significant revenue reversals. Thus, service fee revenue is recognized monthly at the time the market constraints have been removed, the transaction price is known and the services have been performed. Other asset-based fee revenue consists of revenue sharing, fund adviser fees, cash solutions and Trust Co. fees. The Partnership has agreements with clients or product providers to earn other asset-based fees for providing services, which generally include providing investment advice or service to clients or mutual funds, or marketing support or other services to product providers. Additionally, the Partnership earns cash solutions revenue from the Edward Jones Insured Bank Deposit Program (the "IBD Program"), which is an interest-bearing savings solution for clients that offers Federal Deposit Insurance Corporation (“FDIC”) insurance coverage. Edward Jones has agreements with FDIC-insured third-party banks to transfer available cash balances in participating clients' accounts to interest-bearing deposit accounts at those banks. The Partnership, as agent, earns net revenue from fees derived from the average daily deposit balance in the IBD Program. Other asset-based fees are generally based on asset values held in clients' accounts. The services performed for other asset-based fee contracts are a series of distinct services that are substantially the same and have the same pattern of transfer to the client. As a result, the contracts have one performance obligation and revenue is recognized over time as the customer simultaneously receives and consumes the benefit from the services performed by the Partnership. For both service fees and other asset-based fee revenue, revenue is collected monthly or quarterly based on the agreements and the agreements generally do not have a term. Due to the timing of receipt of information, the Partnership uses estimates in recording the accruals related to certain asset-based fees, which are based on historical trends and are adjusted to reflect market conditions for the period covered. Account and activity fee revenue – Revenue is derived from fees based on the number of accounts or activity and includes shareholder accounting services fees, self-directed individual retirement account ("IRA") fees, and other activity-based fee revenue from clients, mutual fund companies and insurance companies. The Partnership has agreements with mutual fund companies for shareholder accounting services in which the Partnership performs certain transfer agent support services, which may include tracking client holdings, distributing dividends and shareholder information to clients, and responding to client inquiries. Shareholder accounting services fees are based on the number of mutual fund positions held by clients and fees are collected monthly or quarterly based on the agreements, which generally do not have a term. The transfer agent support services performed in a shareholder accounting services contract are a series of distinct services that are substantially the same and have the same pattern of transfer to the client. As a result, the contract has one performance obligation and revenue is recognized over time as the mutual fund company simultaneously receives and consumes the benefit from the services performed by the Partnership. The Partnership also earns retirement account fees for providing reporting services pursuant to the Internal Revenue Code and account maintenance services. Clients are charged an annual fee per account for these services. Revenue is recognized over a one-year period as the services are provided, which are simultaneously received and consumed by the client. Trade revenue – Revenue is derived from fees based on client transactions and includes commissions and principal transactions. The primary source of trade revenue is from commissions revenue which consists of charges to clients for the distribution of mutual fund shares and insurance products and the purchase or sale of securities. Principal transactions revenue primarily results from the Partnership’s distribution of and participation in principal trading activities in municipal obligations, certificates of deposit and corporate obligations. Principal transactions are generally entered into by the Partnership to facilitate a client's buy or sell order for certain fixed income products. Brokerage contracts outline the transaction services to be performed for a client under the contract and do not have a term. The transaction charge to clients varies based on the product and size of the trade. The Partnership's contracts with mutual fund and insurance companies, along with the prospectuses for mutual funds, allow the Partnership to sell those companies' products to clients and earn certain commissions, which for mutual funds, are aligned with the terms of the mutual fund prospectuses. Trade revenue is recognized at a point in time when the transaction is placed, or trade date. On trade date the client obtains control through a right to either own a security for a purchase or receive payment for a sale. Transaction charges are received no later than settlement date . Interest and dividends revenue – Interest revenue is earned on client margin loan balances. In addition, interest revenue is earned on cash and cash equivalents, cash and investments segregated under federal regulations, securities purchased under agreements to resell, Partnership loans and investment securities, none of which is based on revenue contracts with clients. Other revenue (loss), net – Other revenue (loss), net, primarily consists of unrealized gains and losses associated with changes in the fair market value of the Partnership's investment securities held to generate income and to assist in the management of firm liquidity, as well as securities held to economically hedge future liabilities for its non-qualified deferred compensation plan. Unrealized gains and losses are impacted by changes in market levels and the interest rate environment. All revenues are recorded on an accrual basis. For forms of revenue not specifically discussed above, asset-based revenue is recorded over time as the services are provided, and activity or transaction-based revenue is recorded at a point in time when the transaction occurs. Foreign Exchange. Assets and liabilities denominated in a foreign currency are translated at the exchange rate at the end of the period. Revenue and expenses denominated in a foreign currency are translated using the average exchange rate for each period. Foreign exchange gains and losses are included in other revenue (loss), net on the Consolidated Statements of Income. Fair Value. Substantially all of the Partnership’s financial assets and financial liabilities covered under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) No. 820, Fair Value Measurement and Disclosure (“ASC 820”), are carried at fair value or at contracted amounts which approximate fair value given the short time to maturity. Fair value of a financial instrument is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, also known as the “exit price.” Financial assets are marked to bid prices and financial liabilities are marked to offer prices. The Partnership’s financial assets and financial liabilities recorded at fair value in the Consolidated Statements of Financial Condition are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels, defined by ASC 820, with the related amount of subjectivity associated with the inputs to value these assets and liabilities at fair value for each level, are as follows: Level I – Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. The types of assets categorized as Level I generally are government and agency obligations, including U.S. treasuries, investments in publicly traded mutual funds and money market funds with quoted market prices, equities listed in active markets, client fractional share ownership assets and client fractional share redemption obligations. Level II – Inputs (other than quoted prices included in Level I) are either directly or indirectly observable for the asset or liability through correlation with related market data at the measurement date and for the duration of the instrument’s anticipated life. The Partnership uses the market approach valuation technique which incorporates third-party pricing services and other relevant observable information (such as market interest rates, yield curves, prepayment risk and credit risk generated by market transactions involving identical or comparable assets or liabilities) in valuing these types of investments. When third-party pricing services are used, the methods and assumptions used are reviewed by the Partnership. The types of assets categorized as Level II generally are certificates of deposit, municipal obligations and corporate bonds and notes. Level III – Inputs are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the inputs to the model. The Partnership did no t have any assets or liabilities categorized as Level III during the years ended December 31, 2022 and 2021 . Cash and Cash Equivalents. The Partnership considers all highly liquid investments with maturities of three months or less from the purchase date to be cash equivalents. Cash and Investments Segregated under Federal Regulations. Cash, investments and interest receivable related to the investments are segregated in special reserve bank accounts for the benefit of U.S. clients pursuant to the Customer Protection Rule 15c3-3 under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Collateral. The Partnership does not report collateral it has received in secured lending and other arrangements as an asset when the debtor has the right to redeem or substitute the collateral on short notice. Fractional Shares. C lients may receive fractional share interests through the Partnership's dividend reinvestment and dollar cost averaging programs. The Partnership records these fractional shares, which are considered encumbered assets, at fair value in other assets with associated liabilities in accounts payable, accrued expenses and other in the Consolidated Statements of Financial Condition as the Partnership must fulfill its clients' future fractional share redemptions. The liabilities are initially recorded at the dollar amount received from the clients, but the Partnership makes an election to record the liabilities at fair value. Changes in the fair value of the assets and liabilities offset in other revenue (loss), net in the Consolidated Statements of Income, with no impact on income before allocations to partners. Securities Owned . Securities owned, primarily consisting of investment securities, are recorded on a trade-date basis at fair value which is determined by using quoted market or dealer prices. Investment securities, which are primarily held to generate income, also assist in the management of firm liquidity. The unrealized gains and losses for investment securities are recorded in other revenue (loss), net in the Consolidated Statements of Income. The Partnership records the related unrealized gains and losses for inventory securities in trade revenue in the Consolidated Statements of Income. Fixed Assets. Fixed Assets include buildings and leasehold improvements, equipment, software, and land. Buildings are depreciated using the straight-line method over their useful lives, which are estimated at thirty years . Leasehold improvements are amortized based on the term of the lease or the economic useful life of the improvement, whichever is less. Equipment, including furniture and fixtures, is recorded at cost and depreciated using straight-line and accelerated methods over estimated useful lives of three to seven years . Software includes purchased software licenses and internally developed software. Internally developed software consists of labor and consulting costs to develop and implement new software or modify existing software to improve functionality for the Partnership's internal use, while costs in other project phases are expensed as incurred. Software is depreciated using the straight-line method over its useful life, which is estimated at three to five years . The cost of maintenance and repairs is charged against income as incurred, whereas significant enhancements are capitalized and depreciated once the asset is placed into service. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation or amortization is removed from the respective category and any related gain or loss is recorded as other revenue (loss), net in the Consolidated Statements of Income. Fixed assets are reviewed for impairment whenever events or changes in circumstances indicate that the book value of the asset may not be fully recoverable. If impairment is indicated, the asset value is written down to its fair value. Non-qualified Deferred Compensation Plan. The Partnership has a non-qualified deferred compensation plan for certain financial advisors. The Partnership has recorded a liability of $ 235 for the future payments due to financial advisors participating in the plan. As the future amounts due to financial advisors change in accordance with plan requirements, the Partnership records the change in future amounts owed to financial advisors as an increase or decrease in accrued compensation in the Consolidated Statements of Financial Condition and compensation and benefits expense in the Consolidated Statements of Income. The Partnership has chosen to economically hedge this future liability by purchasing securities in an amount similar to the future liability expected to be due in accordance with the plan. These securities are included in investment securities in the Consolidated Statements of Financial Condition and the unrealized gains and losses are recorded in other revenue (loss), net in the Consolidated Statements of Income. Each period, the net impact of the change in future amounts owed to financial advisors in the plan and the change in value of the investment securities are approximately the same, resulting in minimal net impact to the Consolidated Financial Statements. Retirement Transition Plans. The Partnership, in certain circumstances, offers individually tailored retirement transition plans to retiring financial advisors. Each retirement transition plan compensates a retiring financial advisor for successfully providing client transition services in accordance with a retirement and transition agreement. Generally, the retirement and transition agreement is for five years . During the first two years the retiring financial advisor remains an employee and provides client transition services, which include, but are not limited to, the successful transition of client accounts and assets to successor financial advisors, as well as mentoring and providing training and support to successor financial advisors. The financial advisor retires at the end of year two and is subject to a non-compete agreement for three years . Most retiring financial advisors participating in a retirement transition plan are paid ratably over four years . Compensation expense is generally recognized ratably over the two-year transition period which aligns with the service period of most agreements, with compensation expense related to some plans recognized over one year depending on the size and complexity of the transition plan. As of December 31, 2022 , $ 113 was accrued for future payments to financial advisors who have already started a plan, approximately $ 60 of which is expected to be paid in 2023. As of December 31, 2021 , $ 112 was accrued. Successor financial advisors in the program as of December 31, 2022 receive reduced compensation on transitioned assets for up to four years. Lease Accounting. The Partnership leases branch office space under numerous operating leases from non-affiliates and financial advisors. Branch offices are generally leased for terms of five years and generally contain a renewal option. Renewal options are not included in the lease term if it is not reasonably certain the Partnership will exercise the renewal option. The Partnership also leases a home office space and land from non-affiliates with terms ranging from 12 to 30 years . The Partnership recognizes lease liabilities for future lease payments and lease right-of-use assets for the right of use of an underlying asset within a contract. Current leases are all classified as operating leases. Lease right-of-use assets and lease liabilities are recognized in the Consolidated Statements of Financial Condition at commencement date and calculated as the present value of the sum of the remaining fixed lease payments over the lease term. Throughout the lease term, the lease right-of-use asset includes the impact from the timing of lease payments and straight-line rent expense. The Partnership used its incremental borrowing rate based on information available at lease commencement as leases do not contain a readily determinable implicit rate. A single lease cost, or rent expense, is recognized on a straight-line basis over the lease term. The Partnership does not separate lease components (i.e., fixed payments including rent, real estate taxes and insurance costs) from non-lease components (i.e., common-area maintenance) and recognizes them as a single lease component. Variable lease payments not included within lease contracts are expensed as incurred. See Note 2 for additional information. Income Taxes. Generally, income taxes have not been provided for in the Consolidated Financial Statements due to the partnership tax structure where each partner is liable for their own tax payments. For the jurisdictions in which the Partnership is liable for tax payments, the income tax provisions are immaterial (see Note 11). Partnership Capital Subject to Mandatory Redemption. FASB ASC No. 480, Distinguishing Liabilities from Equity (“ASC 480”), established standards for classifying and measuring certain financial instruments with characteristics of both liabilities and equity. Under the provisions of ASC 480, the obligation to redeem a partner’s capital in the event of a partner’s death is one of the criteria requiring capital to be classified as a liability. Since the Partnership Agreement obligates the Partnership to redeem a partner’s capital after a partner’s death, ASC 480 requires all of the Partnership’s equity capital to be classified as a liability. In accordance with ASC 480, income allocable to limited, subordinated limited and general partners is classified as a reduction of income before allocations to partners, which results in a presentation of zero net income for the years ended December 31, 2022, 2021, and 2020. The financial statement presentations required to comply with ASC 480 do not alter the Partnership’s treatment of income, income allocations or capital for any other purposes. Net Income, as defined in the Partnership Agreement, is equivalent to income before allocations to partners on the Consolidated Statements of Income. Such income, if any, for each calendar year is allocated to the Partnership’s three classes of capital in accordance with the formulas prescribed in the Partnership Agreement. Income allocations are based upon partner capital contributions including capital contributions financed with loans from the Partnership. First, limited partners are allocated Net Income in accordance with the prescribed formula for their share of net income. Limited partners generally do not share in the Net Loss, as defined in the Partnership agreement, in any year in which there is a net loss and the Partnership is not dissolved or liquidated. Thereafter, subordinated limited partners and general partners are allocated any remaining Net Income or Net Loss based on formulas as defined in the Partnership Agreement. The limited partnership capital subject to mandatory redemption is held by current and former associates and general partners of the Partnership. Limited partners participate in the Partnership’s profits and are paid a minimum 7.5 % annual return on the face amount of their capital (see Note 9) in accordance with the Partnership Agreement. The subordinated limited partnership capital subject to mandatory redemption is held by current and former general partners of the Partnership. Subordinated limited partners receive a percentage of the Partnership’s Net Income determined in accordance with the Partnership Agreement. The subordinated limited partnership capital subject to mandatory redemption is subordinated to the limited partnership capital. The general partnership capital subject to mandatory redemption is held by current general partners of the Partnership. General partners receive a percentage of the Partnership’s Net Income determined in accordance with the Partnership Agreement. The general partnership capital subject to mandatory redemption is subordinated to the limited partnership capital and the subordinated limited partnership capital. Current Expected Credit Losses . The Partnership individually assessed the current expected credit loss for the assets below. Receivables from Clients Receivables from clients is primarily composed of margin loan balances. The value of securities owned by clients and held as collateral for these receivables is not reflected in the Consolidated Financial Statements. Collateral held as of December 31, 2022 and 2021 was $ 5,094 and $ 4,803 , respectively, and was not repledged or sold. The Partnership considers these financing receivables to be of good credit quality due to the fact that these receivables are primarily collateralized by the related client investments. To estimate expected credit losses on margin loans, the Partnership applied the collateral maintenance practical expedient by comparing the amortized cost basis of the margin loans with the fair value of collateral at the reporting date. Margin loans are limited to a fraction of the total value of the securities held in the client's account against those loans upon issuance in accordance with Financial Industry Regulatory Authority (“FINRA”) rules. In the event of a decline in the market value of the securities in a margin account, the Partnership requires the client to deposit additional securities or cash (or to sell a sufficient amount of securities) so that, at all times, the loan to the client is no greater than 65 % of the value of the securities in the account, which is a more stringent maintenance requirement than FINRA Rule 4210. As such, the Partnership reasonably expects that the borrower will be able to continually replenish collateral securing the financial asset and does not expect the fair value of collateral to fall below the value of margin loans and, as a result, the Partnership considers credit risk related to these receivables to be minimal. The fair value of collateral was higher than the amortized cost basis for virtually all margin loans as of December 31, 2022 and 2021 , and the expected credit loss for those loans was zero for each period. In limited circumstances, a margin loan may become undercollateralized. When this occurs, the Partnership records a reserve for the undercollateralized portion of the loan, which was an immaterial amount as of December 31, 2022 and 2021. Securities Purchased under Agreements to Resell The Partnership participates in short-term resale agreements collateralized by government and agency securities. These transactions are reported as collateralized financing and are carried at contractual cost with accrued interest in receivable from mutual funds, insurance companies and other within the Consolidated Statements of Financial Condition. The fair value of the underlying collateral, plus accrued interest, must equal or exceed 102 % of the carrying amount of the transaction in U.S. agreements and must equal or exceed 100 % of the carrying amount of the transaction in Canada agreements. In the event that the fair value of the collateral does not meet the contractual minimums, the counterparty is obligated to me |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | NOTE 2 – LEASES For the years ended December 31, 2022 and 2021 , cash paid for amounts included in the measurement of operating lease liabilities was $ 326 and $ 322 , respectively, and lease right-of-use assets obtained in exchange for new operating lease liabilities was $ 330 and $ 325 , respectively. The weighted-average remaining lease term was four years as of both December 31, 2022 and 2021 , and the weighted-average discount rate was 2.6 % and 2.1 %, respectively. The following table summarizes the Partnership's operating lease cost, variable lease cost not included in the lease liability and total lease cost for the years ended December 31: 2022 2021 2020 Lease Costs: Operating lease cost $ 328 $ 319 $ 304 Variable lease cost 61 58 57 Total lease cost $ 389 $ 377 $ 360 The Partnership's future undiscounted cash outflows for operating leases are summarized below as of December 31: 2022 2023 $ 310 2024 249 2025 188 2026 130 2027 68 Thereafter 69 Total lease payments 1,014 Less: Interest 56 Total present value of lease liabilities $ 958 While the rights and obligations for leases that have not yet commenced are not significant, the Partnership regularly enters into new branch office leases. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | NOTE 3 – REVENUE The following tables show the Partnership's disaggregated revenue information for the years ended December 31: 2022 U.S. Canada Total Fee revenue: Asset-based fee revenue: Advisory programs fees $ 7,237 $ 147 $ 7,384 Service fees 1,405 107 1,512 Other asset-based fees 912 — 912 Total asset-based fee revenue 9,554 254 9,808 Account and activity fee revenue: Shareholder accounting services fees 454 — 454 Other account and activity fee revenue 225 13 238 Total account and activity fee revenue 679 13 692 Total fee revenue 10,233 267 10,500 Trade revenue: Commissions 1,273 45 1,318 Principal transactions 158 8 166 Total trade revenue 1,431 53 1,484 Total revenue from customers 11,664 320 11,984 Net interest and dividends and other revenue 238 47 285 Net revenue $ 11,902 $ 367 $ 12,269 2021 U.S. Canada Total Fee revenue: Asset-based fee revenue: Advisory programs fees $ 7,293 $ 128 $ 7,421 Service fees 1,563 113 1,676 Other asset-based fees 640 — 640 Total asset-based fee revenue 9,496 241 9,737 Account and activity fee revenue: Shareholder accounting services fees 436 — 436 Other account and activity fee revenue 237 14 251 Total account and activity fee revenue 673 14 687 Total fee revenue 10,169 255 10,424 Trade revenue: Commissions 1,627 52 1,679 Principal transactions 37 3 40 Total trade revenue 1,664 55 1,719 Total revenue from customers 11,833 310 12,143 Net interest and dividends and other revenue 113 23 136 Net revenue $ 11,946 $ 333 $ 12,279 2020 U.S. Canada Total Fee revenue: Asset-based fee revenue: Advisory programs fees $ 5,452 $ 85 $ 5,537 Service fees 1,298 89 1,387 Other asset-based fees 591 — 591 Total asset-based fee revenue 7,341 174 7,515 Account and activity fee revenue: Shareholder accounting services fees 424 — 424 Other account and activity fee revenue 224 12 236 Total account and activity fee revenue 648 12 660 Total fee revenue 7,989 186 8,175 Trade revenue: Commissions 1,611 49 1,660 Principal transactions 56 3 59 Total trade revenue 1,667 52 1,719 Total revenue from customers 9,656 238 9,894 Net interest and dividends and other revenue 149 20 169 Net revenue $ 9,805 $ 258 $ 10,063 The Partnership derived 11 %, 12 % and 13 % of its total revenue for the years ended December 31, 2022, 2021 and 2020, respectively, from one mutual fund company. The revenue generated from this company primarily relates to business conducted with the Partnership’s U.S. segment. |
Payable to Clients
Payable to Clients | 12 Months Ended |
Dec. 31, 2022 | |
Payable To Clients [Abstract] | |
Payable to Clients | NOTE 5 – PAYABLE TO CLIENTS Payable to clients is composed of cash amounts held by the Partnership due to clients. Substantially all amounts payable to clients are subject to withdrawal upon client request. The Partnership pays interest, which was 0.85 % as of December 31, 2022 and 0.01 % as of December 31, 2021 and 2020, on the vast majority of credit balances in client accounts. The total interest paid to clients for the years ended December 31, 2022, 2021, and 2020 was $ 50 , $ 2 and $ 9 , respectively. |
Receivable from Mutual Funds, I
Receivable from Mutual Funds, Insurance Companies, and Other | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Receivable from Mutual Funds, Insurance Companies, and Other | NOTE 4 – RECEIVABLES As of December 31, 2022, 2021, and 2020 , $ 637 , $ 695 and $ 563 , respectively, of the receivable from clients balance related to revenue contracts with customers. The following table shows the Partnership's receivable from mutual funds, insurance companies and other as of December 31: 2022 2021 Deposit for Canadian retirement accounts $ 451 $ 459 Fees from mutual funds and insurance companies 328 335 Other receivables 71 56 Total $ 850 $ 850 The deposit for Canadian retirement accounts is required by Canadian regulations. The Partnership is required to hold deposits with a trustee for clients’ retirement funds held in Canada. The receivable from mutual funds and insurance companies is related to revenue contracts with customers. The balance was $ 285 as of December 31, 2020. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value | NOTE 6 – FAIR VALUE The following tables show the Partnership's financial assets and liabilities measured at fair value: Fair Value as of December 31, 2022 Level I Level II Level III Total Assets: Cash equivalents: Certificates of deposit $ — $ 144 $ — $ 144 Money market funds 49 — — 49 Total cash equivalents $ 49 $ 144 $ — $ 193 Investments segregated under federal regulations: U.S. treasuries $ 10,327 $ — $ — $ 10,327 Certificates of deposit — 1,000 — 1,000 Total investments segregated under federal regulations $ 10,327 $ 1,000 $ — $ 11,327 Securities owned: Investment securities: Government and agency obligations $ 1,000 $ — $ — $ 1,000 Mutual funds (1) 310 — — 310 Municipal obligations — 11 — 11 Equities 8 — — 8 Total investment securities $ 1,318 $ 11 $ — $ 1,329 Inventory securities: Municipal obligations $ — $ 28 $ — $ 28 Corporate bonds and notes — 21 — 21 Equities 20 — — 20 Mutual funds 4 — — 4 Government and agency obligations 3 — — 3 Total inventory securities $ 27 $ 49 $ — $ 76 Other assets: Client fractional share ownership assets $ 680 $ — $ — $ 680 Liabilities: Accounts payable, accrued expenses and other: Client fractional share redemption obligations $ 680 $ — $ — $ 680 Fair Value as of December 31, 2021 Level I Level II Level III Total Assets: Cash equivalents: Certificates of deposit $ — $ 266 $ — $ 266 Money market funds 47 — — 47 Total cash equivalents $ 47 $ 266 $ — $ 313 Investments segregated under federal regulations: U.S. treasuries $ 13,908 $ — $ — $ 13,908 Certificates of deposit — 400 — 400 Total investments segregated under federal regulations $ 13,908 $ 400 $ — $ 14,308 Securities owned: Investment securities: Government and agency obligations $ 413 $ — $ — $ 413 Mutual funds (1) 366 — — 366 Equities 3 — — 3 Certificates of deposit — 70 — 70 Total investment securities $ 782 $ 70 $ — $ 852 Inventory securities: Equities $ 18 $ — $ — $ 18 Municipal obligations — 9 — 9 Certificates of deposit — 6 — 6 Corporate bonds and notes — 3 — 3 Mutual funds 2 — — 2 Total inventory securities $ 20 $ 18 $ — $ 38 Other assets: Client fractional share ownership assets $ 710 $ — $ — $ 710 Liabilities: Accounts payable, accrued expenses and other: Client fractional share redemption obligations $ 710 $ — $ — $ 710 (1) The mutual funds balance consists primarily of securities held to economically hedge future liabilities for the non-qualified deferred compensation plan. The balance also includes a security held for regulatory purposes at the Trust Co. |
Equipment, Property and Improve
Equipment, Property and Improvements | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment and Intangible Assets | NOTE 7 – FIXED ASSETS The following table shows the Partnership's fixed assets as of December 31: 2022 2021 Buildings and leasehold improvements $ 1,178 $ 1,115 Equipment, furniture and fixtures 670 598 Software 442 295 Land 48 47 Fixed assets, at cost 2,338 2,055 Less: accumulated depreciation 1,295 1,192 Less: accumulated software amortization 181 138 Fixed assets, net $ 862 $ 725 Depreciation expense on equipment, prop erty and improvements of $ 126 , $ 113 and $ 116 and amortization expense on software of $ 43 , $ 16 and $ 9 is included in the Consolidated Statements of Income within the occupancy and equipment and communications and data processing line items for the years ended December 31, 2022, 2021, and 2020, respectively. The Partnership's weighted average amortization period for software was five years as of December 31, 2022 and 2021. The following table shows the expected future amortization of software, excluding $ 47 of capitalized software costs not yet placed in service that will be amortized in future periods as of December 31: 2022 2023 $ 56 2024 55 2025 51 2026 39 2027 13 Total $ 214 The Partnership's capital expenditures were $ 302 , $ 234 and $ 129 for the years ended December 31, 2022, 2021, and 2020, respectively. The capital expenditures in 2022 were primarily related to software and other technology and facilities improvements in branch offices. |
Lines of Credit
Lines of Credit | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Lines of Credit | NOTE 8 – LINES OF CREDIT The following table shows the composition of the Partnership's aggregate bank lines of credit in place as of December 31: 2022 2021 2022 Credit Facility $ 500 $ — 2018 Credit Facility — 500 Uncommitted secured credit facilities 390 390 Total bank lines of credit $ 890 $ 890 In September 2018, the Partnership entered into a $ 500 committed revolving line of credit (the "2018 Credit Facility"). In October 2022, the Partnership entered into a new $ 500 committed revolving line of credit (the "2022 Credit Facility"), which replaced the 2018 Credit Facility and has an October 2027 expiration date. In accordance with the terms of the 2022 Credit Facility, the Partnership is required to maintain a leverage ratio of no more than 35 % and minimum Partnership capital, net of reserve for anticipated withdrawals and Partnership loans, of at least $ 2,809 . In addition, Edward Jones is required to maintain a minimum tangible net worth of at least $ 1,435 and minimum regulatory net capital of at least 6 % of aggregate debit items as calculated under the alternative method. The Partnership has the ability to draw on various types of loans. The associated interest rate depends on the type of loan, duration of the loan, and the amount of leverage. Contractual rates are based on an index rate plus the applicable spread. The 2022 Credit Facility is intended to provide short-term liquidity to the Partnership should the need arise. As of December 31, 2022, the Partnership was in compliance with all covenants related to the 2022 Credit Facility. In addition, the Partnership has multiple uncommitted secured lines of credit totaling $ 390 that are subject to change at the discretion of the banks. The Partnership also has an additional uncommitted line of credit where the amount and the associated collateral requirements are at the bank's discretion in the event of a borrowing. Based on credit market conditions and the uncommitted nature of these credit facilities, it is possible that these lines of credit could decrease or not be available in the future. Actual borrowing capacity on secured lines is based on availability of client margin securities or firm-owned securities, which would serve as collateral on loans in the event the Partnership borrowed against these lines. There were no amounts outstanding on the 2022 Credit Facility and the 2018 Credit Facility as of December 31, 2022 and 2021, respectively, or the uncommitted lines of credit as of December 31, 2022 and 2021. The Partnership did no t have any draws against these lines of credit during the years ended December 31, 2022 and 2021, except for periodically testing draw procedures. |
Partnership Capital Subject to
Partnership Capital Subject to Mandatory Redemption | 12 Months Ended |
Dec. 31, 2022 | |
Partners' Capital Notes [Abstract] | |
Partnership Capital Subject to Mandatory Redemption | NOTE 9 – PARTNERSHIP CAPITAL SUBJECT TO MANDATORY REDEMPTION The Partnership makes loans available to those general partners and, in limited circumstances, subordinated limited partners (in each case, other than members of the Enterprise Leadership Team ("ELT"), as defined in the Partnership Agreement) who require financing for some or all of their Partnership capital contributions. In limited circumstances, a general partner may withdraw from the Partnership and become a subordinated limited partner while they still have an outstanding Partnership loan. It is anticipated that, of the future general and subordinated limited partnership capital contributions (in each case, other than for ELT members) requiring financing, the majority will be financed through Partnership loans. Loans made by the Partnership to such partners are generally for a period of one year but are expected to be renewed and bear interest at the greater of the Prime Rate for the last business day of the prior fiscal month or 3.25 % per annum. The Partnership recognizes interest income for the interest earned related to these loans. The outstanding amount of Partnership loans is reflected as a reduction to total Partnership capital. As of December 31, 2022 and 2021 , the outstanding amount of Partnership loans was $ 335 and $ 321 , respectively. Interest income earned from these loans, which is included in interest and dividends in the Consolidated Statements of Income, was $ 18 , $ 13 and $ 14 for the years ended December 31, 2022, 2021, and 2020, respectively. The following table shows the roll forward of outstanding Partnership loans for the years ended December 31: 2022 2021 Partnership loans outstanding at beginning of year $ 321 $ 341 Partnership loans issued during the year 276 222 Repayment of Partnership loans during the year ( 262 ) ( 242 ) Total Partnership loans outstanding $ 335 $ 321 The minimum 7.5 % annual return on the face amount of limited partnership capital was $ 91 , $ 92 and $ 93 for the years ended December 31, 2022, 2021 and 2020, respectively. These amounts are included as a component of interest expense in the Consolidated Stateme nts of Income. The Partnership filed a Registration Statement on Form S-8 with the SEC on December 8, 2021, to register $ 700 of Interests issuable pursuant to the Partnership's 2021 Employee Limited Partnership Interest Purchase Plan (the "2021 Plan"). In early 2023, the Partnership issued $ 568 of Interests under the 2021 Plan. Proceeds from the offering under the 2021 Plan are expected to be used to meet growth needs or for other purposes. The remaining $ 132 may be issued at the discretion of the Managing Partner in the future. In November 2022, the Partnership deregistered the remaining $ 60 of unsold Interests under its 2018 Employee Limited Partnership Interest Purchase Plan (the "2018 Plan"). |
Net Capital Requirements
Net Capital Requirements | 12 Months Ended |
Dec. 31, 2022 | |
Broker-Dealer [Abstract] | |
Net Capital Requirements | NOTE 10 – NET CAPITAL REQUIREMENTS As a result of its activities as a U.S. broker-dealer, Edward Jones is subject to the net capital provisions of Rule 15c3-1 of the Exchange Act and capital compliance rules of the FINRA Rule 4110. Under the alternative method permitted by the rules, Edward Jones must maintain minimum net capital equal to the greater of $ 0.25 or 2 % of aggregate debit items arising from client transactions. The net capital rules also provide that Edward Jones’ partnership capital may not be withdrawn if resulting net capital would be less than minimum requirements. Additionally, certain withdrawals require the approval of the SEC and FINRA to the extent they exceed defined levels, even though such withdrawals would not cause net capital to be less than minimum requirements. EJ Canada is a registered broker-dealer regulated in 2022 by the Investment Industry Regulatory Organization of Canada ("IIROC"). Effective January 1, 2023, IIROC was amalgamated into the New Self-Regulatory Organization of Canada (“New SRO”) and IIROC's rules were replaced by New SRO's rules. Under the regulations prescribed by IIROC as of December 31, 2022 and New SRO currently, EJ Canada was and is required to maintain minimum levels of risk-adjusted capital, which are dependent on the nature of EJ Canada's assets and operations. The following table shows the capital figures for the U.S. and Canada broker-dealers as of December 31: 2022 2021 U.S.: Net capital $ 1,038 $ 1,306 Net capital in excess of the minimum required $ 965 $ 1,248 Net capital as a percentage of aggregate debit items 28.4 % 45.0 % Net capital after anticipated capital withdrawals, as a 13.3 % 23.1 % Canada: Regulatory risk-adjusted capital $ 103 $ 56 Regulatory risk-adjusted capital in excess of the $ 102 $ 47 U.S. net capital, Canada regulatory risk-adjusted capital and the related capital percentages may fluctuate on a daily basis. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 11 – INCOME TAXES The Partnership is a pass-through entity for federal and state income tax purposes and generally does not incur income taxes. Instead, its earnings and losses are included in the income tax returns of the general, subordinated limited and limited partners. However, the Partnership's structure does include certain subsidiaries which are corporations that are subject to income tax. As of December 31, 2022 and 2021 , the Partnership's tax basis of net assets and liabilities exceeds the book basis by $ 241 and $ 168 , respectively. The primary difference between financial statement basis and tax basis is related to the deferral for tax purposes in deducting accrued expenses until they are paid. Since the Partnership is treated as a pass-through entity for federal and state income tax purposes, the difference between the tax basis and the book basis of assets and liabilities will impact the future tax liabilities of the partners. The tax differences will not impact the net income of the Partnership. FASB ASC No. 740, Income Taxes, requires the Partnership to determine whether, upon review by the applicable taxing authority, each of its income tax positions has a likelihood of being realized that is greater than fifty percent , which could result in the Partnership recording a tax liability that would reduce Partnership capital. The Partnership did no t have any significant uncertain tax positions as of December 31, 2022 and 2021 and is not aware of any tax positions that will significantly change during the next twelve months. The Partnership and its subsidiaries are generally subject to examination by the Internal Revenue Service ("IRS") and by various state and foreign taxing authorities in the jurisdictions in which the Partnership and its subsidiaries conduct business. Tax years prior to 2019 are generally no longer subject to examination by the IRS, state, local or foreign tax authorities. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | NOTE 12 – EMPLOYEE BENEFIT PLANS The Partnership maintains a profit sharing and 401(k) plan covering all eligible U.S. employees, U.S. general partners and service partners, a Group Registered Retirement Savings Plan covering all eligible EJ Canada employees and Canadian general partners, and a Deferred Profit Sharing Plan covering all eligible EJ Canada employees. The Partnership contributed approximately $ 263 , $ 286 and $ 249 in total to these plans in early 2023, 2022 and 2021, respectively, for the years ended December 31, 2022, 2021, and 2020. In addition to the contribution above, the Partnership contributed approximately $ 48 , $ 39 and $ 36 to the profit sharing plan in early 2023, 2022 and 2021, respectively, applying mandatory profit sharing contributions that were withheld from service partners during the years ended December 31, 2022 , 2021 and 2020. |
Commitments, Guarantees and Ris
Commitments, Guarantees and Risks | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Guarantees and Risks | NOTE 13 – COMMITMENTS, GUARANTEES AND RISKS As of December 31, 2022, the Partnership would be subject to termination fees of approximately $ 426 in the event the Partnership terminated existing contractual commitments with certain vendors providing ongoing services primarily for information technology to support the Partnership's strategic initiatives, in addition to services for operations and marketing. As of December 31, 2022, the Partnership made no such decision to terminate these services. These termination fees will decrease over the related contract periods, which generally expire within the next three years . As of December 31, 2022, the Partnership has a revolving line of credit available (see Note 8). The Partnership provides margin loans to its clients in accordance with Federal Reserve Board Regulation T and FINRA Rule 4210, under which loans are collateralized by securities in client accounts. The Partnership monitors required margin levels and requires clients to deposit additional collateral or reduce positions to meet minimum collateral requirements (see Note 1). The Partnership's securities activities involve execution, settlement and financing of various securities transactions for clients. The Partnership may be exposed to risk of loss in the event clients, other brokers and dealers, banks, depositories or clearing organizations are unable to fulfill contractual obligations. The Partnership has controls in place to ensure client activity is monitored and to mitigate the risk of clients' inability to meet their obligations to the Partnership. Therefore, the Partnership considers its potential to make payments under these client transactions to be remote and accordingly, no liability has been recognized for these transactions. Cash balances held at various major U.S. financial institutions, which typically exceed FDIC insurance coverage limits, subject the Partnership to a concentration of credit risk. Additionally, EJ Canada may also have cash deposits in excess of the applicable insured amounts. The Partnership regularly monitors the credit ratings of these financial institutions in order to help mitigate the credit risk that exists with the deposits in excess of insured amounts. The Partnership has credit exposure to government and agency securities through its investment securities, investments segregated under federal regulations and collateral held for resell agreements. The Partnership's primary exposure on resell agreements is with the counterparty and the Partnership would only have exposure to government and agency credit risk in the event of the counterparty's default on the resell agreements (see Note 1). The Partnership provides guarantees to securities clearing houses and exchanges under their standard membership agreements, which require a member to guarantee the performance of other members. Under these agreements, if a member becomes unable to satisfy its obligations to the clearing houses and exchanges, all other members would be required to meet any shortfall. The Partnership's liability under these arrangements is not quantifiable and may exceed the cash and securities it has posted as collateral. However, the Partnership considers the likelihood that the Partnership will be required to make payments under these agreements to be remote. Accordingly, no liability has been recognized for these transactions. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | NOTE 14 – CONTINGENCIES In the normal course of its business, the Partnership is involved, from time to time, in various legal and regulatory matters, including arbitrations, class actions, other litigation, and examinations, investigations and proceedings by governmental authorities, self-regulatory organizations and other regulators, which may result in losses. These matters include: Securities Class Action. On March 30, 2018, Edward Jones and its affiliated entities and individuals were named as defendants in a putative class action ( Anderson, et al. v. Edward D. Jones & Co., L.P., et al.) filed in the U.S. District Court for the Eastern District of California. The lawsuit originally was brought under the Securities Act of 1933, as amended (the "Securities Act"), and the Exchange Act, as well as Missouri and California law and alleges that the defendants inappropriately transitioned client assets from commission-based accounts to fee-based programs. The plaintiffs requested declaratory, equitable, and exemplary relief, and compensatory damages. On July 9, 2019, the district court entered an order dismissing the lawsuit in its entirety without prejudice. On July 29, 2019, the plaintiffs filed a second amended complaint, which eliminated certain defendants, withdrew the Securities Act claims, added claims under the Investment Advisers Act of 1940, as amended (the "Investment Advisers Act"), and certain additional state law claims, and reasserted the remaining claims with modified allegations. The defendants filed a motion to dismiss, the plaintiffs subsequently withdrew their Investment Advisers Act claims, and on November 12, 2019, the district court granted the defendants' motion to dismiss all other claims. The plaintiffs appealed the district court's dismissal of certain of their state law claims on jurisdictional grounds but did not appeal the dismissal of the remaining claims. On March 4, 2021, the U.S. Court of Appeals for the Ninth Circuit reversed the district court's dismissal of those state law claims. After further appellate proceedings in the Ninth Circuit, defendants filed a petition for certiorari with the U.S. Supreme Court, which was denied on January 18, 2022. On February 2, 2022, the defendants filed a renewed motion to dismiss the plaintiffs' remaining state law claims. On May 9, 2022, the court dismissed the second amended complaint without prejudice. On May 31, 2022, the plaintiffs filed a third amended complaint alleging a single claim of breach of fiduciary duty under Missouri and California law against a single defendant, Edward Jones, which Edward Jones moved to dismiss on June 21, 2022. The district court denied the motion to dismiss in an order filed on October 26, 2022, and Edward Jones filed its answer to the third amended complaint on November 14, 2022. Edward Jones denies the plaintiffs' allegations and intends to continue to vigorously defend this lawsuit. Gender and Race Discrimination Class Action . On March 9, 2022, Edward Jones and JFC were named as defendants in a lawsuit ( Dixon, et al. v. Edward D. Jones & Co., L.P., et al. ) filed in the U.S. District Court for the Eastern District of Missouri. The lawsuit was brought by a current financial advisor as a putative collective action alleging gender discrimination under the Fair Labor Standards Act, and by a former financial advisor as a putative class action alleging race discrimination under 42 U.S.C. § 1981. On April 25, 2022, the plaintiffs filed an amended complaint reasserting the original claims with modified allegations and adding claims under Title VII of the Civil Rights Act of 1964 alleging race/national origin, gender, and sexual orientation discrimination on behalf of putative classes of financial advisors. The defendants filed a motion to dismiss on May 23, 2022, and on September 15, 2022, the court stayed further proceedings in the case pending a decision on the motion to dismiss. Edward Jones and JFC deny the allegations and intend to vigorously defend this lawsuit. Home Office Gender Discrimination Class Action . Edward Jones and JFC were named as defendants in a lawsuit brought by a former employee ( Zigler v. Edward D. Jones & Co., L.P. et al. ) in the Northern District of Illinois. The initial complaint filed on September 1, 2022 alleged putative class and collective claims under the Equal Pay Act of 1963, Title VII of the Civil Rights Act of 1964 and Illinois state laws of gender-based wage discrimination against a subset of female home office associates whom the plaintiff described as “home office financial advisor[s]." The plaintiff amended the complaint on November 29, 2022, seeking to expand the putative collective and class definitions to include all female home office associates in any role. Edward Jones and JFC filed a motion to dismiss the amended complaint on January 6, 2023. Edward Jones and JFC deny the allegations and intend to vigorously defend this lawsuit. SEC Off-Channel Communications Platforms Investigation . Edward Jones has been responding to requests from the SEC in connection with its publicly reported investigation of compliance by broker-dealers, investment advisers and other financial institutions with recordkeeping requirements. The investigation relates to retention of electronic communications stored on personal devices or messaging platforms that have not been approved by Edward Jones for business use by its employees. Edward Jones is cooperating with the SEC’s investigation. In addition to these matters, the Partnership provides for potential losses that may arise related to other contingencies. The Partnership assesses its liabilities and contingencies utilizing available information. The Partnership accrues for potential losses for those matters where it is probable that the Partnership will incur a potential loss to the extent that the amount of such potential loss can be reasonably estimated, in accordance with FASB ASC No. 450, Contingencies . This liability represents the Partnership’s estimate of the probable loss as of December 31, 2022 , after considering, among other factors, the progress of each case, the Partnership's experience with other legal and regulatory matters and discussion with legal counsel, and is believed to be sufficient. The aggregate accrued liability is recorded within the accounts payable, accrued expenses and other line of the Consolidated Statements of Financial Condition and may be adjusted from time to time to reflect any relevant developments. For such matters where an accrued liability has not been established and the Partnership believes a loss is both reasonably possible and estimable, as well as for matters where an accrued liability has been recorded but for which an exposure to loss in excess of the amount accrued is both reasonably possible and estimable, the current estimated aggregated range of additional possible loss is up to $ 7 as of December 31, 2022. This range of reasonably possible loss does not necessarily represent the Partnership's maximum loss exposure as the Partnership was not able to estimate a range of reasonably possible loss for all matters. Further, the matters underlying any disclosed estimated range will change from time to time, and actual results may vary significantly. While the outcome of these matters is inherently uncertain, based on information currently available, the Partnership believes that its established liabilities as of December 31, 2022 are adequate and the liabilities arising from such matters will not have a material adverse effect on the consolidated financial position, results of operations or cash flows of the Partnership. However, based on future developments and the potential unfavorable resolution of these matters, the outcome could be material to the Partnership’s future consolidated operating results for a particular period or periods. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 15 – SEGMENT INFORMATION The Partnership has determined it has two operating and reportable segments based upon geographic location, the U.S. and Canada. The accounting policies of the segments are the same as those described in Note 1 – Summary of Significant Accounting Policies. Canada segment information, as reported in the following table, is based upon the consolidated financial statements of the Partnership's Canada operations, which primarily occur through a non-guaranteed subsidiary of the Partnership. For computation of segment information, the Partnership allocates costs incurred by the U.S. entity in support of Canada operations to the Canada segment and does not eliminate intercompany items, such as management fees paid to affiliated entities. The U.S. segment information is derived from the Consolidated Financial Statements less the Canada segment information as presented. Pre-variable income represents income before variable compensation expense and before allocations to partners. This is consistent with how management reviews the segments to assess performance. The Partnership evaluates segment performance based upon income (loss) before allocations to partners, as well as income before variable compensation (“pre-variable income”). Variable compensation is determined at the Partnership level for profit sharing and home office associate and branch team support members bonus amounts, and therefore is allocated to each geographic segment independent of that segment’s individual pre-variable income. Financial advisor bonuses are determined by the overall Partnership’s profitability, as well as the performance of the individual financial advisors. Both income (loss) before allocations to partners and pre-variable income are considered in evaluating segment performance. Long-lived assets are not disclosed because the balances are not used for evaluating segment performance and deciding how to allocate resources to segments. However, total assets for each segment are provided for informational purposes, as well as capital expenditures and depreciation and amortization. The following table shows financial information for the Partnership’s reportable segments for the years ended December 31: 2022 2021 2020 Net revenue: U.S. $ 11,902 $ 11,946 $ 9,805 Canada 367 333 258 Total net revenue $ 12,269 $ 12,279 $ 10,063 Net interest and dividends revenue: U.S. $ 354 $ 69 $ 99 Canada 18 4 6 Total net interest and dividends revenue $ 372 $ 73 $ 105 Pre-variable income: U.S. $ 3,057 $ 3,489 $ 2,673 Canada 82 65 26 Total pre-variable income $ 3,139 $ 3,554 $ 2,699 Variable compensation: U.S. $ 1,694 $ 1,907 $ 1,385 Canada 41 42 29 Total variable compensation $ 1,735 $ 1,949 $ 1,414 Income (loss) before allocations to partners: U.S. $ 1,363 $ 1,582 $ 1,288 Canada 41 23 ( 3 ) Total income before allocations to partners $ 1,404 $ 1,605 $ 1,285 Capital expenditures: U.S. $ 298 $ 229 $ 126 Canada 4 5 3 Total capital expenditures $ 302 $ 234 $ 129 Depreciation and amortization: U.S. $ 483 $ 445 $ 428 Canada 16 16 15 Total depreciation and amortization $ 499 $ 461 $ 443 Total assets at year end: U.S. $ 28,761 $ 31,034 $ 27,776 Canada 1,131 1,174 1,078 Total assets $ 29,892 $ 32,208 $ 28,854 Financial advisors at year end: U.S. 17,961 17,971 18,321 Canada 835 852 904 Total financial advisors 18,796 18,823 19,225 |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Parties | NOTE 16 – RELATED PARTIES As of December 31, 2022, the Partnership leased approximately 11 % of its branch office space from its financial advisors. The associated lease right-of-use assets and lease liabilities included in the Consolidated Statements of Financial Condition as of December 31, 2022 and 2021 were $ 105 and $ 106 and $ 95 and $ 96 , respectively. Lease cost related to these leases was $ 41 , $ 37 and $ 35 for the years ended December 31, 2022, 2021, and 2020, respectively. These leases are executed and maintained in a similar manner as those entered into with third parties. See Note 2 for additional information about the Partnership's leases. Passport Research served as the investment adviser to the Money Market Fund, which is offered solely to clients of Edward Jones, until the transfer of investment advisory services to Olive Street became effective on November 2, 2022 (see Note 1). Both investment advisers contractually agreed to waive fees and/or reimburse fund operating expenses to the extent necessary to limit the annual operating expenses of the Money Market Fund. For the years ended December 31, 2022, 2021 and 2020, Passport Research earned $ 48 , $ 15 and $ 56 in investment management fees, respectively, net of waived fees of $ 8 , $ 51 and $ 7 in the respective periods to maintain a positive client yield on the Money Market Fund in light of the low interest rate environment in those years. Olive Street earned $ 8 in investment management fees from the Money Market Fund and reimbursed Edward Jones $ 2 for operating expenses for the year ended December 31, 2022. Olive Street is also the investment adviser to the eleven sub-advised mutual funds comprising the BB Trust, which is offered solely to clients of Edward Jones. Olive Street has primary responsibility for setting the overall investment strategies and selecting and managing sub-advisers, subject to the review and approval of the BB Trust's Board of Trustees. Olive Street has contractually agreed to waive any investment adviser fees above those amounts paid to the sub-advisers for the BB Trust. The investment adviser fee revenue earned by Olive Street, included within asset-based fee revenue in the Consolidated Statements of Income, is offset by the expense paid to the sub-advisers, included within fund sub-adviser fees on the Consolidated Statements of Income. The total amounts recognized for the years ended December 31, 2022, 2021, and 2020 were $ 239 , $ 233 and $ 174 , respectively. Edward Jones earns certain fees from the Money Market Fund, some or all of which may be voluntarily waived. For the year ended December 31, 2022, Olive Street reimbursed Edward Jones $ 5 for waived fees, resulting in total fees earned by the Partnership of $ 103 , net of the $ 89 of waived fees in the period. Edward Jones waived all $ 190 earned in fees during 2021. For the year ended December 31, 2020, total fees earned were $ 46 , net of the $ 133 of waived fees in the period. Edward Jones waived fees in 2022, 2021, and 2020 to limit the Money Market Fund's annual operating expenses, as well as to maintain a positive client yield in light of the low interest rate environment in those years. Edward Jones Foundation ("Foundation") is a non-profit organization that supports national, regional, and local nonprofits to advance a range of community causes championed by the Partnership, its affiliates and employees. The Foundation is governed by certain JFC general partners, and Edward Jones is the sole contributor of funds. Edward Jones contributed to the Foundation during 2022, 2021 and 2020, which is reflected in other operating expenses in the Consolidated Statement of Income. Contributions are voluntary and at the discretion of Edward Jones each period. In the normal course of business, partners and associates of the Partnership and its affiliates use the same advisory, brokerage and trust services of the Partnership as unrelated third parties, with certain discounts on commissions and fees for certain services. The Partnership has included balances arising from such transactions in the Consolidated Financial Statements on the same basis as other clients. The Partnership recognizes interest income for the interest earned from partners who elect to finance a portion or all of their Partnership capital contributions through loans made available from the Partnership (see Note 9). |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Offsetting [Abstract] | |
Offsetting Assets and Liabilities | NOTE 17 – OFFSETTING ASSETS AND LIABILITIES The Partnership does not offset financial instruments in the Consolidated Statements of Financial Condition. However, the Partnership enters into master netting arrangements with counterparties for securities purchased under agreements to resell that are subject to net settlement in the event of default. These agreements create a right of offset for the amounts due to and due from the same counterparty in the event of default or bankruptcy. The following table shows the Partnership's securities purchased under agreements to resell as of December 31: Gross amounts Net amounts Gross amounts not offset offset in the presented in the in the Consolidated Gross Consolidated Consolidated Statements of Financial amounts of Statements of Statements of Condition recognized Financial Financial Financial Securities a ssets Condition Condition instruments collateral Net amount 2022 $ 437 — 437 — ( 437 ) $ — 2021 $ 1,529 — 1,529 — ( 1,526 ) $ 3 |
Cash Flow Information
Cash Flow Information | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow Information | NOTE 18 – CASH FLOW INFORMATION The following table shows supplemental cash flow information for the years ended December 31: 2022 2021 2020 Cash paid for interest $ 141 $ 94 $ 103 Cash paid for taxes $ 17 $ 13 $ 11 Non-cash activities: Issuance of general partnership interests through $ 276 $ 222 $ 163 Repayment of partnership loans through distributions $ 191 $ 225 $ 182 Declared distributions for retired partnership capital (1) $ 219 $ 254 $ 145 (1) Declared distributions for retired Partnership capital are included in the accounts payable, accrued expenses and other line of the Consolidated Statements of Financial Condition. The following table reconciles certain line items in the Consolidated Statements of Financial Condition to the cash, cash equivalents and restricted cash balance in the Consolidated Statements of Cash Flows for the years ended December 31: 2022 2021 2020 Cash and cash equivalents $ 1,882 $ 1,835 $ 1,125 Cash and investments segregated under federal regulations 17,827 20,179 17,918 Less: Investments segregated under federal regulations 11,327 14,308 12,168 Total cash, cash equivalents and restricted cash $ 8,382 $ 7,706 $ 6,875 Restricted cash represents cash segregated in special reserve bank accounts for the benefit of U.S. clients pursuant to the Customer Protection Rule 15c3-3 under the Exchange Act. |
Parent Company Only Financial S
Parent Company Only Financial Statements | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Only Financial Statements | THE JONES FINANCIAL COMPANIES, L.L.L.P. (Parent Company Only) CONDENSED STATEMENT S OF FINANCIAL CONDITION December 31, December 31, (Dollars in millions) 2022 2021 ASSETS: Cash and cash equivalents $ 216 $ 266 Investment securities 16 74 Investment in and receivable from subsidiaries 3,737 3,632 Other assets 68 41 TOTAL ASSETS $ 4,037 $ 4,013 LIABILITIES: Accounts payable and accrued expenses $ 218 $ 258 Partnership capital subject to mandatory redemption $ 3,819 $ 3,755 TOTAL LIABILITIES $ 4,037 $ 4,013 THE JONES FINANCIAL COMPANIES, L.L.L.P. (Parent Company Only) CONDENSED STATEM ENTS OF INCOME For the Years Ended December 31, (Dollars in millions) 2022 2021 2020 NET REVENUE Subsidiary earnings $ 1,386 $ 1,593 $ 1,271 Management fee income 2,391 2,395 1,852 Other 20 13 15 Total revenue 3,797 4,001 3,138 Interest expense 92 92 93 Net revenue 3,705 3,909 3,045 OPERATING EXPENSES Compensation and benefits 2,301 2,303 1,759 Other operating expenses — 1 1 Total operating expenses 2,301 2,304 1,760 INCOME BEFORE ALLOCATIONS TO PARTNERS $ 1,404 $ 1,605 $ 1,285 Allocations to partners ( 1,404 ) ( 1,605 ) ( 1,285 ) NET INCOME $ — $ — $ — THE JONES FINANCIAL COMPANIES, L.L.L.P. (Parent Company Only) CONDENSED STATEM ENTS OF CASH FLOWS For the Years Ended December 31, (Dollars in millions) 2022 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ — $ — $ — Adjustments to reconcile net income to net cash provided by Income before allocations to partners 1,404 1,605 1,285 Changes in assets and liabilities: Investment in subsidiaries 58 ( 71 ) ( 1 ) Investment securities ( 105 ) ( 276 ) ( 247 ) Other assets ( 27 ) 14 ( 6 ) Accounts payable and accrued expenses ( 5 ) 1 — Net cash provided by operating activities 1,325 1,273 1,031 CASH FLOWS FROM FINANCING ACTIVITIES: Repayments of partnership loans 71 17 — Issuance of partnership interests 63 66 50 Redemption of partnership interests ( 336 ) ( 260 ) ( 214 ) Distributions from partnership capital ( 1,173 ) ( 1,153 ) ( 864 ) Net cash used in financing activities ( 1,375 ) ( 1,330 ) ( 1,028 ) Net (decrease) increase in cash and cash equivalents ( 50 ) ( 57 ) 3 CASH AND CASH EQUIVALENTS: Beginning of year 266 323 320 End of year $ 216 $ 266 $ 323 NON-CASH ACTIVITIES: Issuance of general partnership interests through $ 276 $ 222 $ 163 Repayment of partnership loans through distributions from $ 191 $ 225 $ 182 Declaration of distributions from subsidiary in current year $ 667 $ 434 $ 474 Declared distributions for retired partnership capital $ 219 $ 254 $ 145 |
Revenue and Expense
Revenue and Expense | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |
Related Parties | NOTE 16 – RELATED PARTIES As of December 31, 2022, the Partnership leased approximately 11 % of its branch office space from its financial advisors. The associated lease right-of-use assets and lease liabilities included in the Consolidated Statements of Financial Condition as of December 31, 2022 and 2021 were $ 105 and $ 106 and $ 95 and $ 96 , respectively. Lease cost related to these leases was $ 41 , $ 37 and $ 35 for the years ended December 31, 2022, 2021, and 2020, respectively. These leases are executed and maintained in a similar manner as those entered into with third parties. See Note 2 for additional information about the Partnership's leases. Passport Research served as the investment adviser to the Money Market Fund, which is offered solely to clients of Edward Jones, until the transfer of investment advisory services to Olive Street became effective on November 2, 2022 (see Note 1). Both investment advisers contractually agreed to waive fees and/or reimburse fund operating expenses to the extent necessary to limit the annual operating expenses of the Money Market Fund. For the years ended December 31, 2022, 2021 and 2020, Passport Research earned $ 48 , $ 15 and $ 56 in investment management fees, respectively, net of waived fees of $ 8 , $ 51 and $ 7 in the respective periods to maintain a positive client yield on the Money Market Fund in light of the low interest rate environment in those years. Olive Street earned $ 8 in investment management fees from the Money Market Fund and reimbursed Edward Jones $ 2 for operating expenses for the year ended December 31, 2022. Olive Street is also the investment adviser to the eleven sub-advised mutual funds comprising the BB Trust, which is offered solely to clients of Edward Jones. Olive Street has primary responsibility for setting the overall investment strategies and selecting and managing sub-advisers, subject to the review and approval of the BB Trust's Board of Trustees. Olive Street has contractually agreed to waive any investment adviser fees above those amounts paid to the sub-advisers for the BB Trust. The investment adviser fee revenue earned by Olive Street, included within asset-based fee revenue in the Consolidated Statements of Income, is offset by the expense paid to the sub-advisers, included within fund sub-adviser fees on the Consolidated Statements of Income. The total amounts recognized for the years ended December 31, 2022, 2021, and 2020 were $ 239 , $ 233 and $ 174 , respectively. Edward Jones earns certain fees from the Money Market Fund, some or all of which may be voluntarily waived. For the year ended December 31, 2022, Olive Street reimbursed Edward Jones $ 5 for waived fees, resulting in total fees earned by the Partnership of $ 103 , net of the $ 89 of waived fees in the period. Edward Jones waived all $ 190 earned in fees during 2021. For the year ended December 31, 2020, total fees earned were $ 46 , net of the $ 133 of waived fees in the period. Edward Jones waived fees in 2022, 2021, and 2020 to limit the Money Market Fund's annual operating expenses, as well as to maintain a positive client yield in light of the low interest rate environment in those years. Edward Jones Foundation ("Foundation") is a non-profit organization that supports national, regional, and local nonprofits to advance a range of community causes championed by the Partnership, its affiliates and employees. The Foundation is governed by certain JFC general partners, and Edward Jones is the sole contributor of funds. Edward Jones contributed to the Foundation during 2022, 2021 and 2020, which is reflected in other operating expenses in the Consolidated Statement of Income. Contributions are voluntary and at the discretion of Edward Jones each period. In the normal course of business, partners and associates of the Partnership and its affiliates use the same advisory, brokerage and trust services of the Partnership as unrelated third parties, with certain discounts on commissions and fees for certain services. The Partnership has included balances arising from such transactions in the Consolidated Financial Statements on the same basis as other clients. The Partnership recognizes interest income for the interest earned from partners who elect to finance a portion or all of their Partnership capital contributions through loans made available from the Partnership (see Note 9). |
Parent Company [Member] | |
Related Party Transaction [Line Items] | |
Related Parties | NOTE 1 – REVENUE AND EXPENSE The Partnership’s principal operating subsidiary, Edward D. Jones & Co., L.P. (“Edward Jones”), has a written agreement with The Jones Financial Companies, L.L.L.P. (“JFC”) for the services of certain financial advisors who are service partners of JFC and not employees of Edward Jones. Pursuant to the agreement, Edward Jones made payments to the service partners of JFC on JFC's behalf for those services provided. This arrangement did not have an impact on net income for the years ended December 31, 2022, 2021, and 2020 but resulted in higher management fee income of $ 2.3 billion, $ 2.3 billion and $ 1.7 billion, respectively, offset by higher compensation expense of $ 2.3 billion, $ 2.3 billion and $ 1.7 billion, respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
The Partnership's Business and Basis of Accounting | The Partnership’s Business and Basis of Accounting. The accompanying Consolidated Financial Statements include the accounts of The Jones Financial Companies, L.L.L.P. and all wholly-owned subsidiaries (collectively, the “Partnership” or "JFC"). The financial position of the Partnership’s subsidiaries in Canada as of November 30, 2022 and 2021 are included in the Partnership's Consolidated Statements of Financial Condition and the results for the twelve month periods ended November 30, 2022, 2021 and 2020 are included in the Partnership’s Consolidated Statements of Income, Consolidated Statements of Changes in Partnership Capital Subject to Mandatory Redemption and Consolidated Statements of Cash Flows because of the timing of the Partnership’s financial reporting process. The Partnership’s principal operating subsidiary, Edward D. Jones & Co., L.P. (“Edward Jones”), is a registered broker-dealer and investment adviser in the United States (“U.S.”), and one of Edward Jones’ subsidiaries, Edward Jones (an Ontario limited partnership) ("EJ Canada"), is a registered broker-dealer in Canada. Through these entities, the Partnership primarily serves individual investors in the U.S. and Canada. Edward Jones is a retail brokerage business and primarily derives revenues from fees for providing investment advisory and other account services to its clients, fees for assets held by clients and commissions for the distribution of mutual fund shares and insurance products and the purchase or sale of securities. The Partnership conducts business throughout the U.S. and Canada with its clients, various brokers, dealers, clearing organizations, depositories and banks. For financial information related to the Partnership’s two operating segments for the years ended December 31, 2022, 2021, and 2020, see Note 15 to the Consolidated Financial Statements. Trust services are offered to Edward Jones’ U.S. clients through Edward Jones Trust Company (“Trust Co.”), a wholly-owned subsidiary of the Partnership. Olive Street Investment Advisers, LLC ("Olive Street"), a wholly-owned subsidiary of the Partnership, provides investment advisory services to the eleven sub-advised mutual funds comprising the Bridge Builder® Trust ("BB Trust"). Passport Research, Ltd. ("Passport Research"), a wholly-owned subsidiary of the Partnership, provided investment advisory services to the sub-advised Edward Jones Money Market Fund (the "Money Market Fund") through November 1, 2022. Effective November 2, 2022, the Money Market Fund's Board of Trustees approved the transfer of its investment advisory services from Passport Research to Olive Street, which did not have a material effect on the Partnership's Consolidated Financial Statements. The Partnership is currently in the process of dissolving Passport Research. The Consolidated Financial Statements have been prepared on the accrual basis of accounting in conformity with U.S. generally accepted accounting principles (“GAAP”), which require the use of certain estimates by management in determining the Partnership’s assets, liabilities, revenues and expenses. Actual results could differ from these estimates. Certain prior period balances have been adjusted to align to current year presentation. The Partnership evaluated subsequent events for recognition or disclosure through March 10, 2023, whic h was the date these Consolidated Financial Statements were available to be issued, and identified no matters requiring disclosure. |
Partnership Agreement | Partnership Agreement. Under the terms of the Partnership’s Twenty-First Amended and Restated Agreement of Registered Limited Liability Limited Partnership, dated September 1, 2021, (the “Partnership Agreement”), a partner’s capital is required to be redeemed by the Partnership in the event of the partner’s death or withdrawal from the Partnership, subject to compliance with ongoing regulatory capital requirements. In the event of a partner’s death, the Partnership generally redeems the partner’s capital within six months . The Partnership has restrictions in place which govern the withdrawal of capital. Under the terms of the Partnership Agreement, limited partners requesting withdrawal from the Partnership are repaid their capital in three equal annual installments beginning no earlier than 90 days after their withdrawal notice is received by the Managing Partner (as defined in the Partnership Agreement). The capital of general partners requesting withdrawal from the Partnership is converted to subordinated limited partnership capital or, at the discretion of the Managing Partner, redeemed by the Partnership. Subordinated limited partners requesting withdrawal are repaid their capital in six equal annual installments beginning no earlier than 90 days after their request for withdrawal of capital is received by the Managing Partner. The Managing Partner has discretion to waive or modify these withdrawal restrictions and to accelerate the return of capital. All current and future Partnership capital is subordinate to all current and future liabilities of the Partnership. The Partnership Agreement includes additional terms. |
Revenue Recognition | Revenue Recognition. The Partnership's revenue is recognized based on contracts with clients, mutual fund companies, insurance companies and other product providers. As a full-service brokerage firm, Edward Jones provides clients with custodial services, including safekeeping of client funds, collecting and disbursing funds from a client's account, and providing trade confirmations and account statements. The Partnership does not charge a separate fee for these services. Revenue is generally recognized in the same manner for both the U.S. and Canada segments. The Partnership classifies its revenue into the following categories: Asset-based fee revenue – Revenue is derived from fees determined by the underlying value of client assets and includes advisory programs fees, service fees, and other asset-based fee revenue. The primary source of asset-based fee revenue is generated from program fees for investment advisory services provided within the Partnership’s advisory programs, including in the U.S., the Edward Jones Advisory Solutions® program (“Advisory Solutions”) and the Edward Jones Guided Solutions® program ("Guided Solutions") and, in Canada, the Edward Jones Portfolio Program® and the Edward Jones Guided Portfolios® program. Advisory program contracts outline the investment advisory services to be performed for a client under the contract and do not have a definite end date. Program fees are based on the average daily market value of client assets in the program as well as contractual rates and are charged to clients monthly and collected the following month. The investment advisory services performed in an advisory program contract are a series of distinct services that are substantially the same and have the same pattern of transfer to the client. As a result, the contract has one performance obligation and program fee revenue is recognized over time as clients simultaneously receive and consume the benefit from the investment advisory services performed by the Partnership. The Partnership's contracts with mutual fund and insurance companies, along with the prospectuses for mutual funds, allow the Partnership to sell those companies' products to clients (see Trade revenue below for the associated commissions earned from clients) and earn service fees for providing certain distribution and marketing support services for those companies' products held by Edward Jones clients. For mutual funds, those service fees are based on the terms of the mutual fund prospectuses. Service fees are generally based on the average daily market value of client assets held in a company's mutual fund or insurance product. For future service fees the Partnership may earn on existing client assets, market constraints prevent reasonably estimating the transaction price and estimates could result in significant revenue reversals. Thus, service fee revenue is recognized monthly at the time the market constraints have been removed, the transaction price is known and the services have been performed. Other asset-based fee revenue consists of revenue sharing, fund adviser fees, cash solutions and Trust Co. fees. The Partnership has agreements with clients or product providers to earn other asset-based fees for providing services, which generally include providing investment advice or service to clients or mutual funds, or marketing support or other services to product providers. Additionally, the Partnership earns cash solutions revenue from the Edward Jones Insured Bank Deposit Program (the "IBD Program"), which is an interest-bearing savings solution for clients that offers Federal Deposit Insurance Corporation (“FDIC”) insurance coverage. Edward Jones has agreements with FDIC-insured third-party banks to transfer available cash balances in participating clients' accounts to interest-bearing deposit accounts at those banks. The Partnership, as agent, earns net revenue from fees derived from the average daily deposit balance in the IBD Program. Other asset-based fees are generally based on asset values held in clients' accounts. The services performed for other asset-based fee contracts are a series of distinct services that are substantially the same and have the same pattern of transfer to the client. As a result, the contracts have one performance obligation and revenue is recognized over time as the customer simultaneously receives and consumes the benefit from the services performed by the Partnership. For both service fees and other asset-based fee revenue, revenue is collected monthly or quarterly based on the agreements and the agreements generally do not have a term. Due to the timing of receipt of information, the Partnership uses estimates in recording the accruals related to certain asset-based fees, which are based on historical trends and are adjusted to reflect market conditions for the period covered. Account and activity fee revenue – Revenue is derived from fees based on the number of accounts or activity and includes shareholder accounting services fees, self-directed individual retirement account ("IRA") fees, and other activity-based fee revenue from clients, mutual fund companies and insurance companies. The Partnership has agreements with mutual fund companies for shareholder accounting services in which the Partnership performs certain transfer agent support services, which may include tracking client holdings, distributing dividends and shareholder information to clients, and responding to client inquiries. Shareholder accounting services fees are based on the number of mutual fund positions held by clients and fees are collected monthly or quarterly based on the agreements, which generally do not have a term. The transfer agent support services performed in a shareholder accounting services contract are a series of distinct services that are substantially the same and have the same pattern of transfer to the client. As a result, the contract has one performance obligation and revenue is recognized over time as the mutual fund company simultaneously receives and consumes the benefit from the services performed by the Partnership. The Partnership also earns retirement account fees for providing reporting services pursuant to the Internal Revenue Code and account maintenance services. Clients are charged an annual fee per account for these services. Revenue is recognized over a one-year period as the services are provided, which are simultaneously received and consumed by the client. Trade revenue – Revenue is derived from fees based on client transactions and includes commissions and principal transactions. The primary source of trade revenue is from commissions revenue which consists of charges to clients for the distribution of mutual fund shares and insurance products and the purchase or sale of securities. Principal transactions revenue primarily results from the Partnership’s distribution of and participation in principal trading activities in municipal obligations, certificates of deposit and corporate obligations. Principal transactions are generally entered into by the Partnership to facilitate a client's buy or sell order for certain fixed income products. Brokerage contracts outline the transaction services to be performed for a client under the contract and do not have a term. The transaction charge to clients varies based on the product and size of the trade. The Partnership's contracts with mutual fund and insurance companies, along with the prospectuses for mutual funds, allow the Partnership to sell those companies' products to clients and earn certain commissions, which for mutual funds, are aligned with the terms of the mutual fund prospectuses. Trade revenue is recognized at a point in time when the transaction is placed, or trade date. On trade date the client obtains control through a right to either own a security for a purchase or receive payment for a sale. Transaction charges are received no later than settlement date . Interest and dividends revenue – Interest revenue is earned on client margin loan balances. In addition, interest revenue is earned on cash and cash equivalents, cash and investments segregated under federal regulations, securities purchased under agreements to resell, Partnership loans and investment securities, none of which is based on revenue contracts with clients. Other revenue (loss), net – Other revenue (loss), net, primarily consists of unrealized gains and losses associated with changes in the fair market value of the Partnership's investment securities held to generate income and to assist in the management of firm liquidity, as well as securities held to economically hedge future liabilities for its non-qualified deferred compensation plan. Unrealized gains and losses are impacted by changes in market levels and the interest rate environment. All revenues are recorded on an accrual basis. For forms of revenue not specifically discussed above, asset-based revenue is recorded over time as the services are provided, and activity or transaction-based revenue is recorded at a point in time when the transaction occurs. |
Foreign Exchange | Foreign Exchange. Assets and liabilities denominated in a foreign currency are translated at the exchange rate at the end of the period. Revenue and expenses denominated in a foreign currency are translated using the average exchange rate for each period. Foreign exchange gains and losses are included in other revenue (loss), net on the Consolidated Statements of Income. |
Fair Value | Fair Value. Substantially all of the Partnership’s financial assets and financial liabilities covered under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) No. 820, Fair Value Measurement and Disclosure (“ASC 820”), are carried at fair value or at contracted amounts which approximate fair value given the short time to maturity. Fair value of a financial instrument is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, also known as the “exit price.” Financial assets are marked to bid prices and financial liabilities are marked to offer prices. The Partnership’s financial assets and financial liabilities recorded at fair value in the Consolidated Statements of Financial Condition are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels, defined by ASC 820, with the related amount of subjectivity associated with the inputs to value these assets and liabilities at fair value for each level, are as follows: Level I – Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. The types of assets categorized as Level I generally are government and agency obligations, including U.S. treasuries, investments in publicly traded mutual funds and money market funds with quoted market prices, equities listed in active markets, client fractional share ownership assets and client fractional share redemption obligations. Level II – Inputs (other than quoted prices included in Level I) are either directly or indirectly observable for the asset or liability through correlation with related market data at the measurement date and for the duration of the instrument’s anticipated life. The Partnership uses the market approach valuation technique which incorporates third-party pricing services and other relevant observable information (such as market interest rates, yield curves, prepayment risk and credit risk generated by market transactions involving identical or comparable assets or liabilities) in valuing these types of investments. When third-party pricing services are used, the methods and assumptions used are reviewed by the Partnership. The types of assets categorized as Level II generally are certificates of deposit, municipal obligations and corporate bonds and notes. Level III – Inputs are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the inputs to the model. The Partnership did no t have any assets or liabilities categorized as Level III during the years ended December 31, 2022 and 2021 . |
Cash and Cash Equivalents | Cash and Cash Equivalents. The Partnership considers all highly liquid investments with maturities of three months or less from the purchase date to be cash equivalents. |
Cash and Investments Segregated under Federal Regulations | Cash and Investments Segregated under Federal Regulations. Cash, investments and interest receivable related to the investments are segregated in special reserve bank accounts for the benefit of U.S. clients pursuant to the Customer Protection Rule 15c3-3 under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). |
Collateral | Collateral. The Partnership does not report collateral it has received in secured lending and other arrangements as an asset when the debtor has the right to redeem or substitute the collateral on short notice. |
Fractional Shares | Fractional Shares. C lients may receive fractional share interests through the Partnership's dividend reinvestment and dollar cost averaging programs. The Partnership records these fractional shares, which are considered encumbered assets, at fair value in other assets with associated liabilities in accounts payable, accrued expenses and other in the Consolidated Statements of Financial Condition as the Partnership must fulfill its clients' future fractional share redemptions. The liabilities are initially recorded at the dollar amount received from the clients, but the Partnership makes an election to record the liabilities at fair value. Changes in the fair value of the assets and liabilities offset in other revenue (loss), net in the Consolidated Statements of Income, with no impact on income before allocations to partners. |
Securities Owned | Securities Owned . Securities owned, primarily consisting of investment securities, are recorded on a trade-date basis at fair value which is determined by using quoted market or dealer prices. Investment securities, which are primarily held to generate income, also assist in the management of firm liquidity. The unrealized gains and losses for investment securities are recorded in other revenue (loss), net in the Consolidated Statements of Income. The Partnership records the related unrealized gains and losses for inventory securities in trade revenue in the Consolidated Statements of Income. |
Fixed Assets | Fixed Assets. Fixed Assets include buildings and leasehold improvements, equipment, software, and land. Buildings are depreciated using the straight-line method over their useful lives, which are estimated at thirty years . Leasehold improvements are amortized based on the term of the lease or the economic useful life of the improvement, whichever is less. Equipment, including furniture and fixtures, is recorded at cost and depreciated using straight-line and accelerated methods over estimated useful lives of three to seven years . Software includes purchased software licenses and internally developed software. Internally developed software consists of labor and consulting costs to develop and implement new software or modify existing software to improve functionality for the Partnership's internal use, while costs in other project phases are expensed as incurred. Software is depreciated using the straight-line method over its useful life, which is estimated at three to five years . The cost of maintenance and repairs is charged against income as incurred, whereas significant enhancements are capitalized and depreciated once the asset is placed into service. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation or amortization is removed from the respective category and any related gain or loss is recorded as other revenue (loss), net in the Consolidated Statements of Income. Fixed assets are reviewed for impairment whenever events or changes in circumstances indicate that the book value of the asset may not be fully recoverable. If impairment is indicated, the asset value is written down to its fair value. |
Non-qualified Deferred Compensation Plan | Non-qualified Deferred Compensation Plan. The Partnership has a non-qualified deferred compensation plan for certain financial advisors. The Partnership has recorded a liability of $ 235 for the future payments due to financial advisors participating in the plan. As the future amounts due to financial advisors change in accordance with plan requirements, the Partnership records the change in future amounts owed to financial advisors as an increase or decrease in accrued compensation in the Consolidated Statements of Financial Condition and compensation and benefits expense in the Consolidated Statements of Income. The Partnership has chosen to economically hedge this future liability by purchasing securities in an amount similar to the future liability expected to be due in accordance with the plan. These securities are included in investment securities in the Consolidated Statements of Financial Condition and the unrealized gains and losses are recorded in other revenue (loss), net in the Consolidated Statements of Income. Each period, the net impact of the change in future amounts owed to financial advisors in the plan and the change in value of the investment securities are approximately the same, resulting in minimal net impact to the Consolidated Financial Statements. |
Retirement Transition Plans | Retirement Transition Plans. The Partnership, in certain circumstances, offers individually tailored retirement transition plans to retiring financial advisors. Each retirement transition plan compensates a retiring financial advisor for successfully providing client transition services in accordance with a retirement and transition agreement. Generally, the retirement and transition agreement is for five years . During the first two years the retiring financial advisor remains an employee and provides client transition services, which include, but are not limited to, the successful transition of client accounts and assets to successor financial advisors, as well as mentoring and providing training and support to successor financial advisors. The financial advisor retires at the end of year two and is subject to a non-compete agreement for three years . Most retiring financial advisors participating in a retirement transition plan are paid ratably over four years . Compensation expense is generally recognized ratably over the two-year transition period which aligns with the service period of most agreements, with compensation expense related to some plans recognized over one year depending on the size and complexity of the transition plan. As of December 31, 2022 , $ 113 was accrued for future payments to financial advisors who have already started a plan, approximately $ 60 of which is expected to be paid in 2023. As of December 31, 2021 , $ 112 was accrued. Successor financial advisors in the program as of December 31, 2022 receive reduced compensation on transitioned assets for up to four years. |
Lease Accounting | Lease Accounting. The Partnership leases branch office space under numerous operating leases from non-affiliates and financial advisors. Branch offices are generally leased for terms of five years and generally contain a renewal option. Renewal options are not included in the lease term if it is not reasonably certain the Partnership will exercise the renewal option. The Partnership also leases a home office space and land from non-affiliates with terms ranging from 12 to 30 years . The Partnership recognizes lease liabilities for future lease payments and lease right-of-use assets for the right of use of an underlying asset within a contract. Current leases are all classified as operating leases. Lease right-of-use assets and lease liabilities are recognized in the Consolidated Statements of Financial Condition at commencement date and calculated as the present value of the sum of the remaining fixed lease payments over the lease term. Throughout the lease term, the lease right-of-use asset includes the impact from the timing of lease payments and straight-line rent expense. The Partnership used its incremental borrowing rate based on information available at lease commencement as leases do not contain a readily determinable implicit rate. A single lease cost, or rent expense, is recognized on a straight-line basis over the lease term. The Partnership does not separate lease components (i.e., fixed payments including rent, real estate taxes and insurance costs) from non-lease components (i.e., common-area maintenance) and recognizes them as a single lease component. Variable lease payments not included within lease contracts are expensed as incurred. See Note 2 for additional information. |
Income Taxes | Income Taxes. Generally, income taxes have not been provided for in the Consolidated Financial Statements due to the partnership tax structure where each partner is liable for their own tax payments. For the jurisdictions in which the Partnership is liable for tax payments, the income tax provisions are immaterial (see Note 11). |
Partnership Capital Subject to Mandatory Redemption | Partnership Capital Subject to Mandatory Redemption. FASB ASC No. 480, Distinguishing Liabilities from Equity (“ASC 480”), established standards for classifying and measuring certain financial instruments with characteristics of both liabilities and equity. Under the provisions of ASC 480, the obligation to redeem a partner’s capital in the event of a partner’s death is one of the criteria requiring capital to be classified as a liability. Since the Partnership Agreement obligates the Partnership to redeem a partner’s capital after a partner’s death, ASC 480 requires all of the Partnership’s equity capital to be classified as a liability. In accordance with ASC 480, income allocable to limited, subordinated limited and general partners is classified as a reduction of income before allocations to partners, which results in a presentation of zero net income for the years ended December 31, 2022, 2021, and 2020. The financial statement presentations required to comply with ASC 480 do not alter the Partnership’s treatment of income, income allocations or capital for any other purposes. Net Income, as defined in the Partnership Agreement, is equivalent to income before allocations to partners on the Consolidated Statements of Income. Such income, if any, for each calendar year is allocated to the Partnership’s three classes of capital in accordance with the formulas prescribed in the Partnership Agreement. Income allocations are based upon partner capital contributions including capital contributions financed with loans from the Partnership. First, limited partners are allocated Net Income in accordance with the prescribed formula for their share of net income. Limited partners generally do not share in the Net Loss, as defined in the Partnership agreement, in any year in which there is a net loss and the Partnership is not dissolved or liquidated. Thereafter, subordinated limited partners and general partners are allocated any remaining Net Income or Net Loss based on formulas as defined in the Partnership Agreement. The limited partnership capital subject to mandatory redemption is held by current and former associates and general partners of the Partnership. Limited partners participate in the Partnership’s profits and are paid a minimum 7.5 % annual return on the face amount of their capital (see Note 9) in accordance with the Partnership Agreement. The subordinated limited partnership capital subject to mandatory redemption is held by current and former general partners of the Partnership. Subordinated limited partners receive a percentage of the Partnership’s Net Income determined in accordance with the Partnership Agreement. The subordinated limited partnership capital subject to mandatory redemption is subordinated to the limited partnership capital. The general partnership capital subject to mandatory redemption is held by current general partners of the Partnership. General partners receive a percentage of the Partnership’s Net Income determined in accordance with the Partnership Agreement. The general partnership capital subject to mandatory redemption is subordinated to the limited partnership capital and the subordinated limited partnership capital. |
Current Expected Credit Losses | Current Expected Credit Losses . The Partnership individually assessed the current expected credit loss for the assets below. Receivables from Clients Receivables from clients is primarily composed of margin loan balances. The value of securities owned by clients and held as collateral for these receivables is not reflected in the Consolidated Financial Statements. Collateral held as of December 31, 2022 and 2021 was $ 5,094 and $ 4,803 , respectively, and was not repledged or sold. The Partnership considers these financing receivables to be of good credit quality due to the fact that these receivables are primarily collateralized by the related client investments. To estimate expected credit losses on margin loans, the Partnership applied the collateral maintenance practical expedient by comparing the amortized cost basis of the margin loans with the fair value of collateral at the reporting date. Margin loans are limited to a fraction of the total value of the securities held in the client's account against those loans upon issuance in accordance with Financial Industry Regulatory Authority (“FINRA”) rules. In the event of a decline in the market value of the securities in a margin account, the Partnership requires the client to deposit additional securities or cash (or to sell a sufficient amount of securities) so that, at all times, the loan to the client is no greater than 65 % of the value of the securities in the account, which is a more stringent maintenance requirement than FINRA Rule 4210. As such, the Partnership reasonably expects that the borrower will be able to continually replenish collateral securing the financial asset and does not expect the fair value of collateral to fall below the value of margin loans and, as a result, the Partnership considers credit risk related to these receivables to be minimal. The fair value of collateral was higher than the amortized cost basis for virtually all margin loans as of December 31, 2022 and 2021 , and the expected credit loss for those loans was zero for each period. In limited circumstances, a margin loan may become undercollateralized. When this occurs, the Partnership records a reserve for the undercollateralized portion of the loan, which was an immaterial amount as of December 31, 2022 and 2021. Securities Purchased under Agreements to Resell The Partnership participates in short-term resale agreements collateralized by government and agency securities. These transactions are reported as collateralized financing and are carried at contractual cost with accrued interest in receivable from mutual funds, insurance companies and other within the Consolidated Statements of Financial Condition. The fair value of the underlying collateral, plus accrued interest, must equal or exceed 102 % of the carrying amount of the transaction in U.S. agreements and must equal or exceed 100 % of the carrying amount of the transaction in Canada agreements. In the event that the fair value of the collateral does not meet the contractual minimums, the counterparty is obligated to meet any shortfall promptly. It is the Partnership’s policy to have such underlying resale agreement collateral delivered to the Partnership or deposited in its accounts at its custodian banks. The fair value of the collateral related to these agreements was $ 441 and $ 1,526 as of December 31, 2022 and 2021, respectively, and was not repledged or sold. To estimate expected credit losses on the resale agreements, the Partnership applied the collateral maintenance practical expedient by comparing the amortized cost basis of the resale agreements with the fair value of collateral at the reporting date. The counterparties are all financial institutions that the Partnership considers to be reputable and reliable, and the Partnership reasonably expects the counterparties will be able to continually replenish collateral securing the financial asset and does not expect the fair value of collateral to fall below the value of the resale agreements frequently or for an extended period of time. The expected credit loss was zero for each period. Partnership Loans The Partnership makes loans available to those general partners and, in limited circumstances, subordinated limited partners who require financing for some or all of their Partnership capital contributions as discussed in more detail in Note 9. General partners and subordinated limited partners must repay any amount of principal and interest outstanding on their Partnership loans prior to receiving a return of their Partnership capital. The loan value never exceeds the value of capital allocated to the partner, and there has been no historical loss on Partnership loans. As such, the risk of loss is remote, and the expected credit loss was zero as of December 31, 2022 and 2021. Receivables from Revenue Contracts with Customers The majority of the Partnership's receivables are collateralized financial assets, including advisory program fees, retirement fees, mutual fund and insurance service fees, and fund adviser fees, because the fees are paid out of client accounts or third-party products consisting of cash and securities. Due to the size of the fees in relation to the value of the cash and securities in accounts or funds, the collateral value always exceeds the amortized cost basis of the receivables, resulting in a remote risk of loss. In addition, the receivables have a short duration, generally due within 30 to 90 days, and there is no historical evidence of market declines that would cause the fair value of the underlying collateral to decline below the amortized cost of the receivables. The Partnership considered current conditions, and there is not a foreseeable expectation of an event or change which would result in the receivables being undercollateralized or unpaid. The expected credit loss for receivables from revenue contracts with customers was zero as of December 31, 2022 and 2021 . |
Contingencies (ASC No.450) | The Partnership assesses its liabilities and contingencies utilizing available information. The Partnership accrues for potential losses for those matters where it is probable that the Partnership will incur a potential loss to the extent that the amount of such potential loss can be reasonably estimated, in accordance with FASB ASC No. 450, Contingencies . This liability represents the Partnership’s estimate of the probable loss as of December 31, 2022 , after considering, among other factors, the progress of each case, the Partnership's experience with other legal and regulatory matters and discussion with legal counsel, and is believed to be sufficient. The aggregate accrued liability is recorded within the accounts payable, accrued expenses and other line of the Consolidated Statements of Financial Condition and may be adjusted from time to time to reflect any relevant developments. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Lease Cost | The following table summarizes the Partnership's operating lease cost, variable lease cost not included in the lease liability and total lease cost for the years ended December 31: 2022 2021 2020 Lease Costs: Operating lease cost $ 328 $ 319 $ 304 Variable lease cost 61 58 57 Total lease cost $ 389 $ 377 $ 360 |
Schedule of Future Undiscounted Cash Outflows for Operating Leases | The Partnership's future undiscounted cash outflows for operating leases are summarized below as of December 31: 2022 2023 $ 310 2024 249 2025 188 2026 130 2027 68 Thereafter 69 Total lease payments 1,014 Less: Interest 56 Total present value of lease liabilities $ 958 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Partnership's Disaggregated Revenue | The following tables show the Partnership's disaggregated revenue information for the years ended December 31: 2022 U.S. Canada Total Fee revenue: Asset-based fee revenue: Advisory programs fees $ 7,237 $ 147 $ 7,384 Service fees 1,405 107 1,512 Other asset-based fees 912 — 912 Total asset-based fee revenue 9,554 254 9,808 Account and activity fee revenue: Shareholder accounting services fees 454 — 454 Other account and activity fee revenue 225 13 238 Total account and activity fee revenue 679 13 692 Total fee revenue 10,233 267 10,500 Trade revenue: Commissions 1,273 45 1,318 Principal transactions 158 8 166 Total trade revenue 1,431 53 1,484 Total revenue from customers 11,664 320 11,984 Net interest and dividends and other revenue 238 47 285 Net revenue $ 11,902 $ 367 $ 12,269 2021 U.S. Canada Total Fee revenue: Asset-based fee revenue: Advisory programs fees $ 7,293 $ 128 $ 7,421 Service fees 1,563 113 1,676 Other asset-based fees 640 — 640 Total asset-based fee revenue 9,496 241 9,737 Account and activity fee revenue: Shareholder accounting services fees 436 — 436 Other account and activity fee revenue 237 14 251 Total account and activity fee revenue 673 14 687 Total fee revenue 10,169 255 10,424 Trade revenue: Commissions 1,627 52 1,679 Principal transactions 37 3 40 Total trade revenue 1,664 55 1,719 Total revenue from customers 11,833 310 12,143 Net interest and dividends and other revenue 113 23 136 Net revenue $ 11,946 $ 333 $ 12,279 2020 U.S. Canada Total Fee revenue: Asset-based fee revenue: Advisory programs fees $ 5,452 $ 85 $ 5,537 Service fees 1,298 89 1,387 Other asset-based fees 591 — 591 Total asset-based fee revenue 7,341 174 7,515 Account and activity fee revenue: Shareholder accounting services fees 424 — 424 Other account and activity fee revenue 224 12 236 Total account and activity fee revenue 648 12 660 Total fee revenue 7,989 186 8,175 Trade revenue: Commissions 1,611 49 1,660 Principal transactions 56 3 59 Total trade revenue 1,667 52 1,719 Total revenue from customers 9,656 238 9,894 Net interest and dividends and other revenue 149 20 169 Net revenue $ 9,805 $ 258 $ 10,063 |
Receivable from Mutual Funds,_2
Receivable from Mutual Funds, Insurance Companies, and Other (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Composition of Partnership's Receivable from Mutual Funds, Insurance Companies and Other | The following table shows the Partnership's receivable from mutual funds, insurance companies and other as of December 31: 2022 2021 Deposit for Canadian retirement accounts $ 451 $ 459 Fees from mutual funds and insurance companies 328 335 Other receivables 71 56 Total $ 850 $ 850 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Partnership's Financial Assets and Liabilities at Fair Value | The following tables show the Partnership's financial assets and liabilities measured at fair value: Fair Value as of December 31, 2022 Level I Level II Level III Total Assets: Cash equivalents: Certificates of deposit $ — $ 144 $ — $ 144 Money market funds 49 — — 49 Total cash equivalents $ 49 $ 144 $ — $ 193 Investments segregated under federal regulations: U.S. treasuries $ 10,327 $ — $ — $ 10,327 Certificates of deposit — 1,000 — 1,000 Total investments segregated under federal regulations $ 10,327 $ 1,000 $ — $ 11,327 Securities owned: Investment securities: Government and agency obligations $ 1,000 $ — $ — $ 1,000 Mutual funds (1) 310 — — 310 Municipal obligations — 11 — 11 Equities 8 — — 8 Total investment securities $ 1,318 $ 11 $ — $ 1,329 Inventory securities: Municipal obligations $ — $ 28 $ — $ 28 Corporate bonds and notes — 21 — 21 Equities 20 — — 20 Mutual funds 4 — — 4 Government and agency obligations 3 — — 3 Total inventory securities $ 27 $ 49 $ — $ 76 Other assets: Client fractional share ownership assets $ 680 $ — $ — $ 680 Liabilities: Accounts payable, accrued expenses and other: Client fractional share redemption obligations $ 680 $ — $ — $ 680 Fair Value as of December 31, 2021 Level I Level II Level III Total Assets: Cash equivalents: Certificates of deposit $ — $ 266 $ — $ 266 Money market funds 47 — — 47 Total cash equivalents $ 47 $ 266 $ — $ 313 Investments segregated under federal regulations: U.S. treasuries $ 13,908 $ — $ — $ 13,908 Certificates of deposit — 400 — 400 Total investments segregated under federal regulations $ 13,908 $ 400 $ — $ 14,308 Securities owned: Investment securities: Government and agency obligations $ 413 $ — $ — $ 413 Mutual funds (1) 366 — — 366 Equities 3 — — 3 Certificates of deposit — 70 — 70 Total investment securities $ 782 $ 70 $ — $ 852 Inventory securities: Equities $ 18 $ — $ — $ 18 Municipal obligations — 9 — 9 Certificates of deposit — 6 — 6 Corporate bonds and notes — 3 — 3 Mutual funds 2 — — 2 Total inventory securities $ 20 $ 18 $ — $ 38 Other assets: Client fractional share ownership assets $ 710 $ — $ — $ 710 Liabilities: Accounts payable, accrued expenses and other: Client fractional share redemption obligations $ 710 $ — $ — $ 710 (1) The mutual funds balance consists primarily of securities held to economically hedge future liabilities for the non-qualified deferred compensation plan. The balance also includes a security held for regulatory purposes at the Trust Co. |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Partnership Equipment, fixed assets | The following table shows the Partnership's fixed assets as of December 31: 2022 2021 Buildings and leasehold improvements $ 1,178 $ 1,115 Equipment, furniture and fixtures 670 598 Software 442 295 Land 48 47 Fixed assets, at cost 2,338 2,055 Less: accumulated depreciation 1,295 1,192 Less: accumulated software amortization 181 138 Fixed assets, net $ 862 $ 725 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table shows the expected future amortization of software, excluding $ 47 of capitalized software costs not yet placed in service that will be amortized in future periods as of December 31: 2022 2023 $ 56 2024 55 2025 51 2026 39 2027 13 Total $ 214 |
Lines of Credit (Tables)
Lines of Credit (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Composition of Partnership's Aggregate Bank Lines of Credit | The following table shows the composition of the Partnership's aggregate bank lines of credit in place as of December 31: 2022 2021 2022 Credit Facility $ 500 $ — 2018 Credit Facility — 500 Uncommitted secured credit facilities 390 390 Total bank lines of credit $ 890 $ 890 |
Partnership Capital Subject t_2
Partnership Capital Subject to Mandatory Redemption (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Partners' Capital Notes [Abstract] | |
Roll Forward of Outstanding Partnership Loans | The following table shows the roll forward of outstanding Partnership loans for the years ended December 31: 2022 2021 Partnership loans outstanding at beginning of year $ 321 $ 341 Partnership loans issued during the year 276 222 Repayment of Partnership loans during the year ( 262 ) ( 242 ) Total Partnership loans outstanding $ 335 $ 321 |
Net Capital Requirements (Table
Net Capital Requirements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Broker-Dealer [Abstract] | |
Partnership's Capital Figures for U.S. and Canada Broker-Dealer Subsidiaries | The following table shows the capital figures for the U.S. and Canada broker-dealers as of December 31: 2022 2021 U.S.: Net capital $ 1,038 $ 1,306 Net capital in excess of the minimum required $ 965 $ 1,248 Net capital as a percentage of aggregate debit items 28.4 % 45.0 % Net capital after anticipated capital withdrawals, as a 13.3 % 23.1 % Canada: Regulatory risk-adjusted capital $ 103 $ 56 Regulatory risk-adjusted capital in excess of the $ 102 $ 47 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Financial Information for Partnership's Reportable Segments | The following table shows financial information for the Partnership’s reportable segments for the years ended December 31: 2022 2021 2020 Net revenue: U.S. $ 11,902 $ 11,946 $ 9,805 Canada 367 333 258 Total net revenue $ 12,269 $ 12,279 $ 10,063 Net interest and dividends revenue: U.S. $ 354 $ 69 $ 99 Canada 18 4 6 Total net interest and dividends revenue $ 372 $ 73 $ 105 Pre-variable income: U.S. $ 3,057 $ 3,489 $ 2,673 Canada 82 65 26 Total pre-variable income $ 3,139 $ 3,554 $ 2,699 Variable compensation: U.S. $ 1,694 $ 1,907 $ 1,385 Canada 41 42 29 Total variable compensation $ 1,735 $ 1,949 $ 1,414 Income (loss) before allocations to partners: U.S. $ 1,363 $ 1,582 $ 1,288 Canada 41 23 ( 3 ) Total income before allocations to partners $ 1,404 $ 1,605 $ 1,285 Capital expenditures: U.S. $ 298 $ 229 $ 126 Canada 4 5 3 Total capital expenditures $ 302 $ 234 $ 129 Depreciation and amortization: U.S. $ 483 $ 445 $ 428 Canada 16 16 15 Total depreciation and amortization $ 499 $ 461 $ 443 Total assets at year end: U.S. $ 28,761 $ 31,034 $ 27,776 Canada 1,131 1,174 1,078 Total assets $ 29,892 $ 32,208 $ 28,854 Financial advisors at year end: U.S. 17,961 17,971 18,321 Canada 835 852 904 Total financial advisors 18,796 18,823 19,225 |
Offsetting Assets and Liabili_2
Offsetting Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Offsetting [Abstract] | |
Schedule of Partnership's Securities Purchased Under Agreement to Resell | The following table shows the Partnership's securities purchased under agreements to resell as of December 31: Gross amounts Net amounts Gross amounts not offset offset in the presented in the in the Consolidated Gross Consolidated Consolidated Statements of Financial amounts of Statements of Statements of Condition recognized Financial Financial Financial Securities a ssets Condition Condition instruments collateral Net amount 2022 $ 437 — 437 — ( 437 ) $ — 2021 $ 1,529 — 1,529 — ( 1,526 ) $ 3 |
Cash Flow Information (Tables)
Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow Information | The following table shows supplemental cash flow information for the years ended December 31: 2022 2021 2020 Cash paid for interest $ 141 $ 94 $ 103 Cash paid for taxes $ 17 $ 13 $ 11 Non-cash activities: Issuance of general partnership interests through $ 276 $ 222 $ 163 Repayment of partnership loans through distributions $ 191 $ 225 $ 182 Declared distributions for retired partnership capital (1) $ 219 $ 254 $ 145 (1) Declared distributions for retired Partnership capital are included in the accounts payable, accrued expenses and other line of the Consolidated Statements of Financial Condition. |
Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash Balance | The following table reconciles certain line items in the Consolidated Statements of Financial Condition to the cash, cash equivalents and restricted cash balance in the Consolidated Statements of Cash Flows for the years ended December 31: 2022 2021 2020 Cash and cash equivalents $ 1,882 $ 1,835 $ 1,125 Cash and investments segregated under federal regulations 17,827 20,179 17,918 Less: Investments segregated under federal regulations 11,327 14,308 12,168 Total cash, cash equivalents and restricted cash $ 8,382 $ 7,706 $ 6,875 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Segment CapitalClass CapitalRepayment | Dec. 31, 2021 USD ($) Segment | Dec. 31, 2020 USD ($) Segment | |
Basis Of Presentation [Line Items] | |||
Number of operating segments | Segment | 2 | 2 | 2 |
Period for partner's capital redemption in the event of death | 6 months | ||
Number of annual capital repayments for withdrawal of limited partners | Segment | 3 | ||
Period to begin repaying capital upon withdrawal for limited partners | 90 days | ||
Number of annual capital repayments for withdrawal of subordinated limited partners | CapitalRepayment | 6 | ||
Period to begin repaying capital upon withdrawal for subordinated limited partners | 90 days | ||
Fair value of level III, assets | $ 0 | $ 0 | |
Fair value of level III, liabilities | 0 | 0 | |
Liability for the future payments due to financial advisors | $ 235,000,000 | ||
Retirement and transition employment agreement term | 5 years | ||
Retirement transition plan employment term | 2 years | ||
Retirement transition plan non-compete term | 3 years | ||
Retirement transition plan compensation paid term | 4 years | ||
Retirement transition plan accrued future payments | $ 113,000,000 | 112,000,000 | |
Retirement transition plan accrued future payments expected to be paid in 2023 | 60,000,000 | ||
Net income | $ 0 | $ 0 | $ 0 |
Number of classes of capital | CapitalClass | 3 | ||
Limited partnership's minimum annual return rate | 7.50% | 7.50% | 7.50% |
Collateral held for margin loans | $ 5,094,000,000 | $ 4,803,000,000 | |
Expected credit loss for margin loans | $ 0 | 0 | |
Maximum Percentage Of Margin Loan Balance Compared To Value Of Collateral Securities In Accordance With Partnerships Policy | 65% | ||
Expected credit loss on partnership loans | $ 0 | 0 | |
Historical loss on partnership loans | 0 | ||
Expected credit loss for receivables from revenue contracts with customers | 0 | 0 | |
Securities Purchase Agreement [Member] | |||
Basis Of Presentation [Line Items] | |||
Fair value of collateral related to resell agreements | 441,000,000 | 1,526,000,000 | |
Expected credit loss | $ 0 | $ 0 | |
Building [Member] | |||
Basis Of Presentation [Line Items] | |||
Equipment, property and improvements estimated useful lives | 30 years | ||
Lessee Operating Branch Office Spaces [Member] | |||
Basis Of Presentation [Line Items] | |||
Lessee, operating lease, description | The Partnership leases branch office space under numerous operating leases from non-affiliates and financial advisors. Branch offices are generally leased for terms of five years and generally contain a renewal option. | ||
Lessee, operating lease term of contract | 5 years | ||
Lessee Operating Lease Home Office Spaces [Member] | |||
Basis Of Presentation [Line Items] | |||
Lessee, operating lease, description | The Partnership also leases a home office space and land from non-affiliates with terms ranging from 12 to 30 years. | ||
Minimum [Member] | |||
Basis Of Presentation [Line Items] | |||
Retirement transition plan compensation expense term | 1 year | ||
Lessee, operating lease term of contract | 12 years | ||
Term of receivables from revenue from contracts with customers | 30 days | ||
Minimum [Member] | United States [Member] | Securities Purchase Agreement [Member] | |||
Basis Of Presentation [Line Items] | |||
Fair value of underlying collateral as percentage of carrying value of transaction | 102% | ||
Minimum [Member] | Canada [Member] | Securities Purchase Agreement [Member] | |||
Basis Of Presentation [Line Items] | |||
Fair value of underlying collateral as percentage of carrying value of transaction | 100% | ||
Minimum [Member] | Equipment [Member] | |||
Basis Of Presentation [Line Items] | |||
Equipment, property and improvements estimated useful lives | 3 years | ||
Minimum [Member] | Software [Member] | |||
Basis Of Presentation [Line Items] | |||
Equipment, property and improvements estimated useful lives | 3 years | ||
Maximum [Member] | |||
Basis Of Presentation [Line Items] | |||
Retirement transition plan compensation expense term | 2 years | ||
Lessee, operating lease term of contract | 30 years | ||
Term of receivables from revenue from contracts with customers | 90 days | ||
Maximum [Member] | Equipment [Member] | |||
Basis Of Presentation [Line Items] | |||
Equipment, property and improvements estimated useful lives | 7 years | ||
Maximum [Member] | Software [Member] | |||
Basis Of Presentation [Line Items] | |||
Equipment, property and improvements estimated useful lives | 5 years |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Lessee Disclosure [Abstract] | ||
Cash paid for operating leases | $ 326 | $ 322 |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 330 | $ 325 |
Weighted average remaining lease term in years | 4 years | 4 years |
Weighted average discount rate | 2.60% | 2.10% |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lease Costs: | |||
Operating lease cost | $ 328 | $ 319 | $ 304 |
Variable lease cost | 61 | 58 | 57 |
Lease, Cost, Total | $ 389 | $ 377 | $ 360 |
Leases - Schedule of Future Und
Leases - Schedule of Future Undiscounted Cash Outflows for Operating Leases (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Lessee Disclosure [Abstract] | ||
2023 | $ 310 | |
2024 | 249 | |
2025 | 188 | |
2026 | 130 | |
2027 | 68 | |
Thereafter | 69 | |
Total lease payments | 1,014 | |
Less: Interest | 56 | |
Total present value of lease liabilities | $ 958 | $ 954 |
Receivable from Mutual Funds,_3
Receivable from Mutual Funds, Insurance Companies, and Other - Additional Information (Detail) - Customer | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Receivables And Revenue [Line Items] | |||
Concentration risk, number of customers | 1 | 1 | 1 |
Sales Revenue Net [Member] | Customer [Member] | Operating Segments [Member] | |||
Receivables And Revenue [Line Items] | |||
Concentration Risk, Percentage | 11% | 12% | 13% |
Receivable from Mutual Funds,_4
Receivable from Mutual Funds, Insurance Companies, and Other - Schedule of Partnership's Disaggregated Revenue (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | |||
Revenue | $ 11,984 | $ 12,143 | $ 9,894 |
Net interest and dividends and other revenue | 285 | 136 | 169 |
Net revenue | 12,269 | 12,279 | 10,063 |
United States [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 11,664 | 11,833 | 9,656 |
Net interest and dividends and other revenue | 238 | 113 | 149 |
Net revenue | 11,902 | 11,946 | 9,805 |
Canada [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 320 | 310 | 238 |
Net interest and dividends and other revenue | 47 | 23 | 20 |
Net revenue | 367 | 333 | 258 |
Total Fee Revenue [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 10,500 | 10,424 | 8,175 |
Total Fee Revenue [Member] | United States [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 10,233 | 10,169 | 7,989 |
Total Fee Revenue [Member] | Canada [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 267 | 255 | 186 |
Asset-based Fee Revenue [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 9,808 | 9,737 | 7,515 |
Asset-based Fee Revenue [Member] | Advisory Programs Fees [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 7,384 | 7,421 | 5,537 |
Asset-based Fee Revenue [Member] | Service Fees [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 1,512 | 1,676 | 1,387 |
Asset-based Fee Revenue [Member] | Other Asset-based Fees [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 912 | 640 | 591 |
Asset-based Fee Revenue [Member] | United States [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 9,554 | 9,496 | 7,341 |
Asset-based Fee Revenue [Member] | United States [Member] | Advisory Programs Fees [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 7,237 | 7,293 | 5,452 |
Asset-based Fee Revenue [Member] | United States [Member] | Service Fees [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 1,405 | 1,563 | 1,298 |
Asset-based Fee Revenue [Member] | United States [Member] | Other Asset-based Fees [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 912 | 640 | 591 |
Asset-based Fee Revenue [Member] | Canada [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 254 | 241 | 174 |
Asset-based Fee Revenue [Member] | Canada [Member] | Advisory Programs Fees [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 147 | 128 | 85 |
Asset-based Fee Revenue [Member] | Canada [Member] | Service Fees [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 107 | 113 | 89 |
Asset-based Fee Revenue [Member] | Canada [Member] | Other Asset-based Fees [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Account and Activity Fee Revenue [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 692 | 687 | 660 |
Account and Activity Fee Revenue [Member] | Shareholder Accounting Services Fees [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 454 | 436 | 424 |
Account and Activity Fee Revenue [Member] | Other Account and Activity Fee Revenue [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 238 | 251 | 236 |
Account and Activity Fee Revenue [Member] | United States [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 679 | 673 | 648 |
Account and Activity Fee Revenue [Member] | United States [Member] | Shareholder Accounting Services Fees [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 454 | 436 | 424 |
Account and Activity Fee Revenue [Member] | United States [Member] | Other Account and Activity Fee Revenue [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 225 | 237 | 224 |
Account and Activity Fee Revenue [Member] | Canada [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 13 | 14 | 12 |
Account and Activity Fee Revenue [Member] | Canada [Member] | Shareholder Accounting Services Fees [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Account and Activity Fee Revenue [Member] | Canada [Member] | Other Account and Activity Fee Revenue [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 13 | 14 | 12 |
Trade Revenue [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 1,484 | 1,719 | 1,719 |
Trade Revenue [Member] | Commissions [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 1,318 | 1,679 | 1,660 |
Trade Revenue [Member] | Principal Transactions [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 166 | 40 | 59 |
Trade Revenue [Member] | United States [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 1,431 | 1,664 | 1,667 |
Trade Revenue [Member] | United States [Member] | Commissions [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 1,273 | 1,627 | 1,611 |
Trade Revenue [Member] | United States [Member] | Principal Transactions [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 158 | 37 | 56 |
Trade Revenue [Member] | Canada [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 53 | 55 | 52 |
Trade Revenue [Member] | Canada [Member] | Commissions [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 45 | 52 | 49 |
Trade Revenue [Member] | Canada [Member] | Principal Transactions [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | $ 8 | $ 3 | $ 3 |
Payable to Clients - Additional
Payable to Clients - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Payable To Clients [Abstract] | |||
Interest percentage paid on client credits | 0.85% | 0.01% | 0.01% |
Total interest paid to clients | $ 50 | $ 2 | $ 9 |
Receivables - Additional Inform
Receivables - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Revenue from Contract with Customer [Abstract] | |||
Receivables from clients | $ 637 | $ 695 | $ 563 |
Fees from mutual fund and insurance companies | $ 328 | $ 335 | $ 285 |
Receivables (Detail)
Receivables (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Broker-Dealer [Abstract] | |||
Deposit for Canadian retirement accounts | $ 451 | $ 459 | |
Fees from mutual funds and insurance companies | 328 | 335 | $ 285 |
Other receivables | 71 | 56 | |
Total | $ 850 | $ 850 |
Fair Value - Partnership's Fina
Fair Value - Partnership's Financial Assets and Liabilities at Fair Value (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash equivalents: | |||
Total cash equivalents | $ 193 | $ 313 | |
Investments segregated under federal regulations: | |||
Total investments segregated under federal regulations | 11,327 | 14,308 | |
Investment securities: | |||
Total investment securities | 1,329 | 852 | |
Inventory securities: | |||
Total inventory securities | 76 | 38 | |
Other assets: | |||
Client fractional share ownership assets | 680 | 710 | |
Accounts payable, accrued expenses and other: | |||
Client fractional share redemption obligations | 680 | 710 | |
Equities [Member] | |||
Investment securities: | |||
Total investment securities | 8 | 3 | |
Inventory securities: | |||
Total inventory securities | 20 | 18 | |
Corporate Bonds and Notes [Member] | |||
Inventory securities: | |||
Total inventory securities | 21 | 3 | |
Government and Agency Obligations [Member] | |||
Investment securities: | |||
Total investment securities | 1,000 | 413 | |
Inventory securities: | |||
Total inventory securities | 3 | ||
U.S. Treasuries [Member] | |||
Investments segregated under federal regulations: | |||
Total investments segregated under federal regulations | 10,327 | 13,908 | |
Mutual Funds [Member] | |||
Investment securities: | |||
Total investment securities | [1] | 310 | 366 |
Inventory securities: | |||
Total inventory securities | 4 | 2 | |
Municipal Obligations [Member] | |||
Investment securities: | |||
Total investment securities | 11 | ||
Inventory securities: | |||
Total inventory securities | 28 | 9 | |
Certificates of Deposit [Member] | |||
Cash equivalents: | |||
Total cash equivalents | 144 | 266 | |
Investments segregated under federal regulations: | |||
Total investments segregated under federal regulations | 1,000 | 400 | |
Investment securities: | |||
Total investment securities | 70 | ||
Inventory securities: | |||
Total inventory securities | 6 | ||
Money Market Funds | |||
Cash equivalents: | |||
Total cash equivalents | 49 | 47 | |
Level I [Member] | |||
Cash equivalents: | |||
Total cash equivalents | 49 | 47 | |
Investments segregated under federal regulations: | |||
Total investments segregated under federal regulations | 10,327 | 13,908 | |
Investment securities: | |||
Total investment securities | 1,318 | 782 | |
Inventory securities: | |||
Total inventory securities | 27 | 20 | |
Other assets: | |||
Client fractional share ownership assets | 680 | 710 | |
Accounts payable, accrued expenses and other: | |||
Client fractional share redemption obligations | 680 | 710 | |
Level I [Member] | Equities [Member] | |||
Investment securities: | |||
Total investment securities | 8 | 3 | |
Inventory securities: | |||
Total inventory securities | 20 | 18 | |
Level I [Member] | Corporate Bonds and Notes [Member] | |||
Inventory securities: | |||
Total inventory securities | 0 | 0 | |
Level I [Member] | Government and Agency Obligations [Member] | |||
Investment securities: | |||
Total investment securities | 1,000 | 413 | |
Inventory securities: | |||
Total inventory securities | 3 | ||
Level I [Member] | U.S. Treasuries [Member] | |||
Investments segregated under federal regulations: | |||
Total investments segregated under federal regulations | 10,327 | 13,908 | |
Level I [Member] | Mutual Funds [Member] | |||
Investment securities: | |||
Total investment securities | [1] | 310 | 366 |
Inventory securities: | |||
Total inventory securities | 4 | 2 | |
Level I [Member] | Municipal Obligations [Member] | |||
Investment securities: | |||
Total investment securities | 0 | ||
Inventory securities: | |||
Total inventory securities | 0 | 0 | |
Level I [Member] | Certificates of Deposit [Member] | |||
Cash equivalents: | |||
Total cash equivalents | 0 | 0 | |
Investments segregated under federal regulations: | |||
Total investments segregated under federal regulations | 0 | 0 | |
Investment securities: | |||
Total investment securities | 0 | ||
Inventory securities: | |||
Total inventory securities | 0 | ||
Level I [Member] | Money Market Funds | |||
Cash equivalents: | |||
Total cash equivalents | 49 | 47 | |
Level II [Member] | |||
Cash equivalents: | |||
Total cash equivalents | 144 | 266 | |
Investments segregated under federal regulations: | |||
Total investments segregated under federal regulations | 1,000 | 400 | |
Investment securities: | |||
Total investment securities | 11 | 70 | |
Inventory securities: | |||
Total inventory securities | 49 | 18 | |
Other assets: | |||
Client fractional share ownership assets | 0 | 0 | |
Accounts payable, accrued expenses and other: | |||
Client fractional share redemption obligations | 0 | 0 | |
Level II [Member] | Equities [Member] | |||
Investment securities: | |||
Total investment securities | 0 | 0 | |
Inventory securities: | |||
Total inventory securities | 0 | 0 | |
Level II [Member] | Corporate Bonds and Notes [Member] | |||
Inventory securities: | |||
Total inventory securities | 21 | 3 | |
Level II [Member] | Government and Agency Obligations [Member] | |||
Investment securities: | |||
Total investment securities | 0 | 0 | |
Inventory securities: | |||
Total inventory securities | 0 | ||
Level II [Member] | U.S. Treasuries [Member] | |||
Investments segregated under federal regulations: | |||
Total investments segregated under federal regulations | 0 | 0 | |
Level II [Member] | Mutual Funds [Member] | |||
Investment securities: | |||
Total investment securities | 0 | 0 | |
Inventory securities: | |||
Total inventory securities | 0 | 0 | |
Level II [Member] | Municipal Obligations [Member] | |||
Investment securities: | |||
Total investment securities | 11 | ||
Inventory securities: | |||
Total inventory securities | 28 | 9 | |
Level II [Member] | Certificates of Deposit [Member] | |||
Cash equivalents: | |||
Total cash equivalents | 144 | 266 | |
Investments segregated under federal regulations: | |||
Total investments segregated under federal regulations | 1,000 | 400 | |
Investment securities: | |||
Total investment securities | 70 | ||
Inventory securities: | |||
Total inventory securities | 6 | ||
Level II [Member] | Money Market Funds | |||
Cash equivalents: | |||
Total cash equivalents | $ 0 | $ 0 | |
[1] The mutual funds balance consists primarily of securities held to economically hedge future liabilities for the non-qualified deferred compensation plan. The balance also includes a security held for regulatory purposes at the Trust Co. |
Fixed Assets - Composition of P
Fixed Assets - Composition of Partnership Equipment, Property and Improvements (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Fixed assets, at cost | $ 2,338 | $ 2,055 |
Less: accumulated depreciation | 1,295 | 1,192 |
Less: accumulated software amortization | 181 | 138 |
Fixed Assets Net, Total | 862 | 725 |
Buildings and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, at cost | 1,178 | 1,115 |
Equipment, Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, at cost | 670 | 598 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, at cost | 442 | 295 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, at cost | $ 48 | $ 47 |
Fixed Assets - Additional Infor
Fixed Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 499 | $ 461 | $ 443 |
Weighted average amortization period for software | 5 years | 5 years | |
Capitalized software costs not yet placed in service | $ 47 | ||
Purchase of equipment, property and improvements, net | 302 | $ 234 | 129 |
Equipment, Property and Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | 126 | 113 | 116 |
Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Amortization expense on software | $ 43 | $ 16 | $ 9 |
Fixed Assets - Schedule of Fini
Fixed Assets - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2023 | $ 56 |
2024 | 55 |
2025 | 51 |
2026 | 39 |
2027 | 13 |
Total | $ 214 |
Lines of Credit - Composition o
Lines of Credit - Composition of Partnership's Aggregate Bank Lines of Credit (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Line Of Credit Facility [Line Items] | ||
Line of credit facility | $ 890 | $ 890 |
2022 Credit Facility [Member] | ||
Line Of Credit Facility [Line Items] | ||
Line of credit facility | 500 | 0 |
2018 Credit Facility [Member] | ||
Line Of Credit Facility [Line Items] | ||
Line of credit facility | 0 | 500 |
Uncommitted Secured Credit Facilities [Member] | ||
Line Of Credit Facility [Line Items] | ||
Line of credit facility | $ 390 | $ 390 |
Lines of Credit - Additional In
Lines of Credit - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Oct. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2018 | |
Line Of Credit Facility [Line Items] | ||||
Line of credit facility, expiration date | Oct. 31, 2027 | |||
Line of credit facility | $ 890 | $ 890 | ||
Minimum Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals and partnership loans | 3,355 | 3,235 | ||
2022 Credit Facility [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Committed Revolving Line of Credits | $ 500 | |||
Line of credit facility | 500 | 0 | ||
Maximum leverage ratio required to be maintained by partnership | 35% | |||
Minimum Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals and partnership loans | $ 2,809 | |||
Minimum tangible net worth | $ 1,435 | |||
Minimum regulatory net capital percentage of debit items | 6% | |||
2018 Credit Facility [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Committed Revolving Line of Credits | $ 500 | |||
Line of credit facility | 0 | 500 | ||
Uncommitted Secured Credit Facilities [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Line of credit facility | 390 | $ 390 | ||
Amounts outstanding | 0 | |||
Partnership draws against lines of credit | $ 0 |
Partnership Capital Subject t_3
Partnership Capital Subject to Mandatory Redemption - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 08, 2021 | Dec. 31, 2019 | |
Partners Capital Account [Line Items] | |||||
Period of loans made by Partnership to general partners | 1 year | ||||
Percentage of interest made by partnership to general partners | 3.25% | ||||
Outstanding amount of partner loans financed through the Partnership | $ 335 | $ 321 | $ 341 | $ 360 | |
Interest income from outstanding amount of general partner loan | $ 18 | $ 13 | $ 14 | ||
Limited partnership's minimum annual return rate | 7.50% | 7.50% | 7.50% | ||
Limited partnership's minimum return, value | $ 91 | $ 92 | $ 93 | ||
2018 Limited Partnership Offering [Member] | |||||
Partners Capital Account [Line Items] | |||||
Limited partnership amount Deregistereds | 60 | ||||
2021 Limited Partnership Offering [Member] | |||||
Partners Capital Account [Line Items] | |||||
Limited partnership amount registered | $ 700 | ||||
Limited partnership interests issued | 568 | ||||
Remaining limited partnership interests that may be issued | $ 132 |
Partnership Capital Subject t_4
Partnership Capital Subject to Mandatory Redemption - Roll Forward of Outstanding Partnership Loans (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Partners' Capital Notes [Abstract] | |||
Partnership loans outstanding at beginning of year | $ 321 | $ 341 | $ 360 |
Partnership loans issued during the year | 276 | 222 | 163 |
Repayment of Partnership loans during the year | (262) | (242) | |
Partnership loans outstanding at end of year | $ 335 | $ 321 | $ 341 |
Net Capital Requirements - Addi
Net Capital Requirements - Additional Information (Detail) - Edward D. Jones & Co., L. P [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Net Capital Requirements [Line Items] | |
Percentage of aggregate debit items arising from customer transactions to maintain minimum net capital requirements | 2% |
Minimum net capital requirements | $ 250 |
Net Capital Requirements - Part
Net Capital Requirements - Partnership's Capital Figures for U.S. and Canada Broker-Dealer Subsidiaries (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Edward D. Jones & Co., L. P [Member] | ||
Regulatory Capital Requirements | ||
Net capital | $ 1,038 | $ 1,306 |
Net capital in excess of the minimum required | $ 965 | $ 1,248 |
Net capital as a percentage of aggregate debit items | 28.40% | 45% |
Net capital after anticipated capital withdrawals, as a percentage of aggregate debit items | 13.30% | 23.10% |
Canada [Member] | ||
Regulatory Capital Requirements | ||
Regulatory risk-adjusted capital | $ 103 | $ 56 |
Regulatory risk-adjusted capital in excess of the minimum required | $ 102 | $ 47 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Partnership's tax basis of assets and liabilities exceeds book basis | $ 241 | $ 168 |
Income tax examination, Likelihood of unfavorable settlement | greater than fifty percent | |
Uncertain tax positions | $ 0 | $ 0 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Partnership's contribution to compensation plans | $ 263 | $ 286 | $ 249 |
Partnership's contribution to compensation plans by applying mandatory contributions withheld from service partners | $ 48 | $ 39 | $ 36 |
Commitments, Guarantees and R_2
Commitments, Guarantees and Risks - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Termination fees | $ 426 |
Expiration period of termination fee | 3 years |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) $ in Millions | Dec. 31, 2022 USD ($) |
Maximum [Member] | |
Loss Contingencies [Line Items] | |
Loss Contingency, Estimate Of Possible Loss | $ 7 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2022 Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Information - Financial
Segment Information - Financial Information for Partnership's Reportable Segments (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Advisor | Dec. 31, 2021 USD ($) Advisor | Dec. 31, 2020 USD ($) Advisor | |
Net revenue | |||
Total net revenue | $ 12,269 | $ 12,279 | $ 10,063 |
Net interest and dividends revenue | |||
Total net interest and dividends revenue | 372 | 73 | 105 |
Pre-variable income: | |||
Total pre-variable income | 3,139 | 3,554 | 2,699 |
Variable compensation: | |||
Total variable compensation | 1,735 | 1,949 | 1,414 |
Income (loss) before allocations to partners: | |||
Income before allocations to partners | 1,404 | 1,605 | 1,285 |
Capital expenditures: | |||
Total capital expenditures | 302 | 234 | 129 |
Depreciation and amortization: | |||
Depreciation and amortization | 499 | 461 | 443 |
Total assets at year end: | |||
Total assets | $ 29,892 | $ 32,208 | $ 28,854 |
Financial advisors at year end: | |||
Total financial advisors | Advisor | 18,796 | 18,823 | 19,225 |
United States [Member] | |||
Net revenue | |||
Total net revenue | $ 11,902 | $ 11,946 | $ 9,805 |
Net interest and dividends revenue | |||
Total net interest and dividends revenue | 354 | 69 | 99 |
Pre-variable income: | |||
Total pre-variable income | 3,057 | 3,489 | 2,673 |
Variable compensation: | |||
Total variable compensation | 1,694 | 1,907 | 1,385 |
Income (loss) before allocations to partners: | |||
Income before allocations to partners | 1,363 | 1,582 | 1,288 |
Capital expenditures: | |||
Total capital expenditures | 298 | 229 | 126 |
Depreciation and amortization: | |||
Depreciation and amortization | 483 | 445 | 428 |
Total assets at year end: | |||
Total assets | $ 28,761 | $ 31,034 | $ 27,776 |
Financial advisors at year end: | |||
Total financial advisors | Advisor | 17,961 | 17,971 | 18,321 |
Canada [Member] | |||
Net revenue | |||
Total net revenue | $ 367 | $ 333 | $ 258 |
Net interest and dividends revenue | |||
Total net interest and dividends revenue | 18 | 4 | 6 |
Pre-variable income: | |||
Total pre-variable income | 82 | 65 | 26 |
Variable compensation: | |||
Total variable compensation | 41 | 42 | 29 |
Income (loss) before allocations to partners: | |||
Income before allocations to partners | 41 | 23 | (3) |
Capital expenditures: | |||
Total capital expenditures | 4 | 5 | 3 |
Depreciation and amortization: | |||
Depreciation and amortization | 16 | 16 | 15 |
Total assets at year end: | |||
Total assets | $ 1,131 | $ 1,174 | $ 1,078 |
Financial advisors at year end: | |||
Total financial advisors | Advisor | 835 | 852 | 904 |
Related Parties - Additional In
Related Parties - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||
Lease cost | $ 328 | $ 319 | $ 304 |
Lease right-of-use assets | 922 | 922 | |
Lease liabilities | 958 | 954 | |
Operating expenses reimbursed | $ 10,865 | 10,674 | 8,778 |
Financial Advisor [Member] | |||
Related Party Transaction [Line Items] | |||
Percentage of branch office space leased from its financial advisors | 11% | ||
Lease cost | $ 41 | 37 | 35 |
Lease right-of-use assets | 105 | 95 | |
Lease liabilities | 106 | 96 | |
BB Trust [Member] | Olive Street [Member] | |||
Related Party Transaction [Line Items] | |||
Investment advisory fee revenue | 239 | 233 | 174 |
Edward Jones Money Market Fund [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue contracts with customers | 103 | 46 | |
Total fees voluntarily waived to limit fund expenses | 89 | 190 | 133 |
Edward Jones Money Market Fund [Member] | Olive Street [Member] | |||
Related Party Transaction [Line Items] | |||
Investment advisory fee revenue | 8 | ||
Operating expenses reimbursed | 2 | ||
Reimbursement of waived fees | 5 | ||
Edward Jones Money Market Fund [Member] | Passport Research, Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Investment advisory fee revenue | 48 | 15 | 56 |
Total fees waived | $ 8 | $ 51 | $ 7 |
Offsetting Assets and Liabili_3
Offsetting Assets and Liabilities - Schedule of Partnership's Securities Purchased Under Agreement to Resell (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Offsetting Securities Purchased under Agreements to Resell [Abstract] | ||
Securities purchased under agreements to resell, Gross amounts of recognized assets | $ 437 | $ 1,529 |
Securities purchased under agreements to resell, Gross amounts offset in the Consolidated Statements of Financial Condition | 0 | 0 |
Securities purchased under agreements to resell, Net amounts presented in the Consolidated Statements of Financial Condition | 437 | 1,529 |
Securities purchased under agreements to resell, Gross amounts not offset in the Consolidated Statements of Financial Condition, Financial instruments | 0 | 0 |
Securities purchased under agreements to resell, Gross amounts not offset in the Consolidated Statements of Financial Condition, Securities collateral | (437) | (1,526) |
Securities purchased under agreements to resell, Net amount | $ 0 | $ 3 |
Cash Flow Information - Schedul
Cash Flow Information - Schedule of Supplemental Cash Flow Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Supplemental Cash Flow Elements [Abstract] | ||||
Cash paid for interest | $ 141 | $ 94 | $ 103 | |
Cash paid for taxes | 17 | 13 | 11 | |
Non-cash activities: | ||||
Issuance of general partnership interests through partnership loans in current year | 276 | 222 | 163 | |
Repayment of partnership loans through distributions from partnership capital in current year | 191 | 225 | 182 | |
Declared distributions for retired partnership capital in current year but unpaid at year end | [1] | $ 219 | $ 254 | $ 145 |
[1] Declared distributions for retired Partnership capital are included in the accounts payable, accrued expenses and other line of the Consolidated Statements of Financial Condition. |
Cash Flow Information - Sched_2
Cash Flow Information - Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash Balance (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Supplemental Cash Flow Elements [Abstract] | |||
Cash and cash equivalents | $ 1,882 | $ 1,835 | $ 1,125 |
Cash and investments segregated under federal regulations | 17,827 | 20,179 | 17,918 |
Less: Investments segregated under federal regulations | 11,327 | 14,308 | 12,168 |
Total cash, cash equivalents and restricted cash | $ 8,382 | $ 7,706 | $ 6,875 |
Schedule I - Condensed Statemen
Schedule I - Condensed Statements of Financial Condition (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS: | ||||
Cash and cash equivalents | $ 1,882 | $ 1,835 | $ 1,125 | |
Investment securities | 1,329 | 852 | ||
Other assets | 932 | 878 | ||
TOTAL ASSETS | 29,892 | 32,208 | 28,854 | |
LIABILITIES: | ||||
Accounts payable, accrued expenses and other | 1,199 | 1,223 | ||
Total partnership capital subject to mandatory redemption | 3,819 | 3,755 | $ 3,589 | $ 3,364 |
TOTAL LIABILITIES | 29,892 | 32,208 | ||
Parent Company [Member] | ||||
ASSETS: | ||||
Cash and cash equivalents | 216 | 266 | ||
Investment securities | 16 | 74 | ||
Investment in subsidiaries | 3,737 | 3,632 | ||
Other assets | 68 | 41 | ||
TOTAL ASSETS | 4,037 | 4,013 | ||
LIABILITIES: | ||||
Accounts payable, accrued expenses and other | 218 | 258 | ||
Total partnership capital subject to mandatory redemption | 3,819 | 3,755 | ||
TOTAL LIABILITIES | $ 4,037 | $ 4,013 |
Schedule I - Condensed Statem_2
Schedule I - Condensed Statements of Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net revenue: | |||
Revenues | $ 12,411 | $ 12,373 | $ 10,165 |
Interest expense | 142 | 94 | 102 |
Net revenue | 12,269 | 12,279 | 10,063 |
OPERATING EXPENSES | |||
Compensation and benefits | 8,568 | 8,720 | 7,186 |
Other operating expenses | 596 | 526 | 361 |
Total operating expenses | 10,865 | 10,674 | 8,778 |
Income before allocations to partners | 1,404 | 1,605 | 1,285 |
Allocations to partners | (1,404) | (1,605) | (1,285) |
NET INCOME | 0 | 0 | 0 |
Parent Company [Member] | |||
Net revenue: | |||
Revenues | 3,797 | 4,001 | 3,138 |
Interest expense | 92 | 92 | 93 |
Net revenue | 3,705 | 3,909 | 3,045 |
OPERATING EXPENSES | |||
Compensation and benefits | 2,301 | 2,303 | 1,759 |
Other operating expenses | 0 | 1 | 1 |
Total operating expenses | 2,301 | 2,304 | 1,760 |
Income before allocations to partners | 1,404 | 1,605 | 1,285 |
Allocations to partners | (1,404) | (1,605) | (1,285) |
NET INCOME | 0 | 0 | 0 |
Parent Company [Member] | Subsidiary Earnings [Member] | |||
Net revenue: | |||
Revenues | 1,386 | 1,593 | 1,271 |
Parent Company [Member] | Management Fee Income [Member] | |||
Net revenue: | |||
Revenues | 2,391 | 2,395 | 1,852 |
Parent Company [Member] | Other [Member] | |||
Net revenue: | |||
Revenues | $ 20 | $ 13 | $ 15 |
Schedule I - Condensed Statem_3
Schedule I - Condensed Statements of Cash Flow (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net income | $ 0 | $ 0 | $ 0 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Income before allocations to partners | 1,404 | 1,605 | 1,285 | |
Changes in assets and liabilities: | ||||
Other assets | (54) | (195) | (67) | |
Accounts payable and accrued expenses | 7 | 227 | 32 | |
Net cash provided by operating activities | 2,353 | 2,395 | 25 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Repayment of general partnership loans | (71) | (45) | 0 | |
Issuance of partnership interests | 63 | 66 | 50 | |
Redemption of partnership interests | (336) | (260) | (214) | |
Distributions from partnership capital | (1,173) | (1,181) | (864) | |
Net cash used in financing activities | (1,375) | (1,330) | (1,028) | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 676 | 831 | (1,132) | |
CASH AND CASH EQUIVALENTS: | ||||
Beginning of year | 7,706 | 6,875 | 8,007 | |
End of year | 8,382 | 7,706 | 6,875 | |
NON-CASH ACTIVITIES: | ||||
Issuance of general partnership interests through partnership loans in current year | 276 | 222 | 163 | |
Repayment of partnership loans through distributions from partnership capital in current year | 262 | 242 | ||
Declared distributions for retired partnership capital in current year but unpaid at year end | [1] | 219 | 254 | 145 |
Parent Company [Member] | ||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net income | 0 | 0 | 0 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Income before allocations to partners | 1,404 | 1,605 | 1,285 | |
Changes in assets and liabilities: | ||||
Investment in subsidiaries | 58 | (71) | (1) | |
Investment securities | (105) | (276) | (247) | |
Other assets | (27) | (14) | (6) | |
Accounts payable and accrued expenses | (5) | 1 | 0 | |
Net cash provided by operating activities | 1,325 | 1,273 | 1,031 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Repayment of general partnership loans | 71 | 17 | 0 | |
Issuance of partnership interests | 63 | 66 | 50 | |
Redemption of partnership interests | (336) | (260) | (214) | |
Distributions from partnership capital | (1,173) | (1,153) | (864) | |
Net cash used in financing activities | (1,375) | (1,330) | (1,028) | |
Net increase (decrease) in cash, cash equivalents and restricted cash | (50) | (57) | 3 | |
CASH AND CASH EQUIVALENTS: | ||||
Beginning of year | 266 | 323 | 320 | |
End of year | 216 | 266 | 323 | |
NON-CASH ACTIVITIES: | ||||
Issuance of general partnership interests through partnership loans in current year | 276 | 222 | 163 | |
Repayment of partnership loans through distributions from partnership capital in current year | 191 | 225 | 182 | |
Declaration of distributions from subsidiary in current year but received after year end | 667 | 434 | 474 | |
Declared distributions for retired partnership capital in current year but unpaid at year end | $ 219 | $ 254 | $ 145 | |
[1] Declared distributions for retired Partnership capital are included in the accounts payable, accrued expenses and other line of the Consolidated Statements of Financial Condition. |
Revenue and Expense - Additiona
Revenue and Expense - Additional Information (Details) - Parent Company [Member] - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||
Management fee income | $ 2.3 | $ 2.3 | $ 1.7 |
Compensation expense | $ 2.3 | $ 2.3 | $ 1.7 |